Posted by 
Preston’s long-awaited Shankly Hotel development faces another delay as building and planning issues continue to slow down progress.
The hotel – originally described as offering a 65-rooms with a bar, restaurant and wedding and events suite – had been due to open in 2019 but has been repeatedly been pushed back and lies a long way from completion. Delays were first caused by the Covid-19 pandemic and then the financial collapse of the Signature Living group which was leading the development.
Administrators Kroll were appointed in August 2022 and have been continuing works with a view to eventually selling the hotel and recovering the millions of pounds owed to lenders. Among those owed money are Lyell Trading Ltd which has so far lent £12m and continues to provide funding to complete works.
Read more: Restoration of former Park Hotel moves a step forward after affordable housing windfall waived
Meanwhile, SW Construction (No.2) Limited is owed £4m and Kroll hopes to recover enough to repay both companies, though currently is unable to say how much will be repaid.
In August, the administrator was granted a 12 month extension to continue its work trying to achieve a better outcome for creditors. It has now filed an update on its work which explains the latest cause of delays.
Administrators Matthew Ingram and Michael Lennon wrote: “There are a number of outstanding issues in relation to building control which continue to hinder progress with the development. The Company has submItted a planning application that addresses the various issues around building control and fire strategy, which in turn should make the Property more attractive to interested parte, planning approval Is obtained.”
They add that these issues delayed the appointment of an agent to market the property but that some marketing work has now taken place and progress on this will be reported in their next update.
The report also confirmed they have submitted a confidential report to the Department for Business, Energy & Industrial Strategy regarding the conduct of the company’s former directors. It continues: “The joint administrators are continuing to review the affairs of the company to identify any action which can be taken that may result in recoveries for creditors.
“The Joint Administrators also have a duty to investigate antecedent transactions, which include but are not limited to transactions to defraud Creditors, preference payments and transactions at an undervalue.
“The Joint Administrators cannot, at this stage, detail the nature of these investigations as it may hamper any further action may be required.”
Earlier this year, the Serious Fraud Office (SFO) announced it was investigating the Signature Group in relation to a suspected £140 million fraud, involving 1000 investors from around the globe.
In February, officers raided three residences and made four arrests in Merseyside and Greater Manchester and all have since been released pending further investigation.
A spokesperson told Blog Preston they were unable to provide updates on live investigations.
Subscribe: Keep in touch directly with the latest headlines from Blog Preston, join our WhatsApp channel and subscribe for our twice-a-week email newsletter. Both free and direct to your phone and inbox.
Read more: See the latest Preston news and headlines
