Two brothers and their sister have been disqualified for a combined period of 28 years for misconduct as directors of a family-run hotel chain which collapsed owing £8m
Heritage Properties & Hotels Ltd traded through a group of four hotels: The Crab at Chieveley Hotel and the Newbury Manor Hotel in Berkshire, Churston Court Hotel in Devon, and Park House Hotel in the Shropshire area.
The company was incorporated in July 2007 and was placed in administration in October 2014 when outstanding creditor claims totalled £8,049,537.
An investigation by the Insolvency Service found that Andrew Hughes and Stephen Hughes despite being previously disqualified from doing so, continued to act in the management of Heritage Properties & Hotels Ltd. They negotiated loan agreements of over £3.5m and created obligations for the company which remained as outstanding liabilities in the administration.
Their sister, Julie Savage, failed to ensure that adequate trading and accounting records of the company were preserved and delivered for the company instead of being deliberately destroyed.
Andrew Hughes was previously disqualified on 4 October 2010 and Stephen Hughes was disqualified on 25 May 2006. The current disqualification means that they are banned from acting as a director or in any way managing or controlling a company till at least May 2028. Julie Savage is disqualified from acting till 2023.
David Brooks, chief investigator, investigation and enforcement services at the Insolvency Service, said: ‘This investigation was hampered by the destruction of records but it was eventually possible to show the involvement of Andrew and Stephen Hughes who were acting in contravention of their disqualifications.
‘If people are disqualified but then act or do so through others, the consequences for them are likely to become serious including prosecution and personal liability.’