High Street Group Set for Compulsory Liquidation After Administration Fails

The North East development company High Street Group, known for constructing Newcastle’s tallest building, Hadrian’s Tower, is likely to be wound up after administrators reported that they could not secure any returns for creditors.

High Street Group in Administration

High Street Group, placed into administration in 2021, accumulated debts exceeding £200 million. This amount includes over £100 million invested by individuals, who now face the grim reality of not recovering their investments. The company also undertook numerous major developments across the UK.

A company enters administration when it becomes insolvent, meaning it no longer has sufficient funds to meet its debt obligations, expenses, and other liabilities.

Loan Notes and Early Redemption Requests

Administrators previously disclosed that High Street Group had raised funds through high-interest loan notes. The company, however, struggled to meet its obligations when a significant number of loan note holders sought early redemption of their investments. There was initial optimism that Hadrian Real Estate—a company originally part of High Street Group, later under new management—might generate returns by continuing some of High Street Group’s projects. However, the administrators’ latest report indicates that these projects are unlikely to yield any financial return for several years.

Compulsory Liquidation

The administrators noted: “Since the last report, further communications with creditors have taken place. As the administration cannot achieve its objectives, namely, to realise property for distribution to secured or preferential creditors, an application has been made to the High Court for a winding-up petition to place the company into compulsory liquidation.”

A remote hearing has been scheduled for 16 August 2024, where it is expected that the court will issue a winding-up order, placing the company into compulsory liquidation with the Official Receiver appointed as liquidator.

Prominent Projects and Financial Downfall

High Street Group is most famous for building Hadrian’s Tower, a luxury apartment complex in Newcastle city centre. The company was also involved in early development plans for land near St James’ Park and the former Brett Oils site on the Tyne in Gateshead. Additionally, it completed projects in Birmingham and the North West before financial issues arose.

The company’s financial troubles were exacerbated by project delays during the pandemic. One of its subsidiaries entered administration in 2019 after failing to repay an overseas lender, and significant delays in filing accounts led to the resignation of two separate auditors.

High Street Group’s Liabilities

According to the latest report from administrators, loan note holders are owed a total of £123.6 million. Additionally, HMRC has identified a liability of approximately £1 million, and the company’s accounts show a further £87.7 million owed to unsecured creditors.

Expert UK Insolvency Lawyers

At LEXLAW, we specialise in navigating the complexities of corporate insolvency. Our experienced legal team offers comprehensive support and guidance to creditors, ensuring your rights and interests are safeguarded throughout the process. We provide expert advice on insolvency proceedings, claim submissions, and exploring recovery options. If you have been served with a Winding-up Petition or face similar challenges, contact us for a consultation to discuss your concerns and potential legal avenues.

High Street Group – Compulsory Liquidation

The impending liquidation of High Street Group, a key player in numerous high-profile developments, has left investors and creditors facing significant financial losses. As the company moves towards compulsory liquidation, it is crucial for affected parties to stay informed and seek professional advice.

Legal Expertise in UK Winding-up Petitions

We understand that winding up petitions are not your everyday legal proceedings. They require a deep understanding of company law, insolvency law, and a keen sense of strategy. Our team of seasoned lawyers specialise in winding up petitions, bringing years of experience and a proven track record to the table. When you partner with us, you gain access to:

• Expertise in Company Law: Our solicitors are well-versed in the intricacies of company law, allowing us to identify situations where winding up petitions are the most effective course of action. We understand the nuances of unpaid debts, contractual obligations, and the legal remedies available to creditors.
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There is an absolute importance in gaining the advantage of having legal experts who specialise in winding up petitions by your side. Without specialist knowledge and experience, creditors will find it challenging to recover their debts and companies facing financial difficulties may miss out on potential solutions and we have the knowledge and expertise to do just that.

In the world of business, disputes can arise unexpectedly, and unpaid debts can pose a significant threat to your company’s financial stability. When faced with such challenges, having a specialised law firm like LEXLAW Solicitors & Barristers on your side can make all the difference. Whether you are a creditor seeking to recover a debt or a business facing financial challenges, we offer expert legal guidance to navigate this intricate process. Contact us to today to allow us to help you every step of the way.