The Serious Fraud Office (SFO) has dropped its investigation into suspected fraud at the company which was supposed to create the Shankly Hotel Preston.
The SFO launched an investigation in 2024, two years after Signature Group collapsed into administration, but now says there is no realistic prospect of conviction.
More than one thousand people across the UK and abroad invested in the company for the promise of high returns from the redevelopment of various landmarks into hotels, apartments and office space. Among these were the former Post Office buildings at Preston Flag Market.
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However, the business collapsed into administration with losses of around £140 million. Administrators for Signature Living Preston last year finally confirmed the sale of the former Post Office building last year with a price tag of around £1m.
The Grade II listed building had been sold to Signature Living group in 2016 by Preston City Council. The approved planning permission allowed for 65-rooms, a bar, restaurant and wedding and events suite and it is now expected that it will now be operated by an international hotel firm under a different name.
The SFO has now confirmed the end of its work on the matter, meaning that no action will be taken against four people who had been arrested and released pending further investigation.
A spokesperson said: “Following a thorough review, we have concluded that the evidence in this prosecution no longer satisfies the Full Code Test set out in the Code for Crown Prosecutors in that there is no realistic prospect of conviction.
“This decision reflects our commitment to making timely judgements about where to focus our resources.
“This concludes the SFO’s investigation into Signature Group.”
