Gavin Woodhouse has lost control of another company after a court ordered temporary administrators to take control of the embattled entrepreneur’s main property group.
The move came as the leader of Plaid Cymru, Adam Price, said he would write to the Serious Fraud Office asking for an “an immediate inquiry” into Woodhouse’s interests and five days after a high court judge ruled that the financier’s business model appeared to be “thoroughly dishonest”.
Philip Duffy and Sarah Bell were appointed interim managers of Northern Powerhouse Developments Ltd on Sunday, the insolvency firm Duff & Phelps said.
After a similar court ruling last week, the pair hold identical roles at two Woodhouse care home businesses – MBI Clifton Moor Ltd and MBI Hawthorn Care Ltd – along with the entrepreneur’s planned £200m adventure resort in south Wales, Afan Valley Ltd.
Price told the Welsh assembly on Tuesday: “I will be writing to the Serious Fraud Office today to ask them to initiate an immediate inquiry.”
The crisis in Woodhouse’s business affairs has developed after publication last month of a Guardian/ITV News undercover investigation, which posed questions about the business interests of the entrepreneur, who has raised more than £80m from private investors but whose firms have a multimillion-pound “black hole”.
Despite Woodhouse raising about £16m five years ago to build four new care homes, none are operational and three have not been built. The businessman was also in the process of raising £40m from private investors to start work on his Afan Valley adventure resort in south Wales, which he launched with the support of celebrity adventurer Bear Grylls who had signed a deal to offer survival courses at the site.
However, in court last week, Judge Sally Barber stated: “Ordinary members of the public have collectively invested millions of pounds into three companies. They have been led to believe that their investment monies were ringfenced and used only for particular projects. This was untrue.”
Woodhouse said: “I am unable to comment in detail on matters that are the subject of ongoing court proceedings. I hope to address the issues raised publicly when I am able to do so.”
He has previously denied any wrongdoing, said that investor monies are held in bank accounts, and that he plans to build the care homes.
