UK High Court Closes Regal Luxury Lodges after fraudulently securing Bounce Back Loan

Regal Luxury Lodges Ltd has been wound up by the High Court and the Official Receiver has been appointed liquidator of the company.
The company was established in June 2019, but by early 2020 was no longer trading.
The company, through one of its directors, applied for a £50,000 Bounce Back Loan, although the company was not eligible for a Bounce Back Loan of any amount, having already ceased trading.
Neither director co-operated with the Insolvency Service investigation, and the directors were also found to have failed in their duties to maintain, preserve or deliver up adequate accounting records.
However it was clear from information available through other enquiries that the company bank account was being misused, with a bank account held by a third party also being used to receive payments from would-be customers.
As a result, the High Court in Manchester agreed that closing down the company was in the public interest, to prevent it being used as a vehicle for fraud.
The company is not related to Regal Holiday Homes or its successor, Regal Leisure Homes, which is now owned by Omar Group.
Dave Hope, Chief Investigator at the Insolvency Service, said:

Regal Luxury Lodges Limited took advantage of customers by misleading them into making payment for lodges which it was unable to deliver and compounded this by an egregious abuse of the Bounce Back Loan scheme to obtain a £50,000 loan at the taxpayer’s expense, after the company had already ceased trading.

The Insolvency Service has acted swiftly to bring this company under the control of the Official Receiver to ensure that the conduct of the directors can be fully investigated.

Notes

Regal Luxury Lodges Limited (Company number: 12050593) was incorporated on 14 June 2019 as a private limited company. The company’s registered office was at Stockholm Road, Hull HU7 0XY.
The company was wound up by the High Court of Justice, Business and Property Courts of England and Wales, in Manchester on 25 January 2022.

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