Close Menu
News

Richard Balfour-Lynn declared ‘bankrupt’ over compensation order

Richard Balfour-Lynn, the property magnate and founder of Balfour Winery, has been declared bankrupt, according to The Times, following his failure to pay millions in compensation to shareholders impacted by the collapse of MWB Group, the former parent company of luxury retailer Liberty. 

At the heart of the case is MWB Group, the holding company behind brands such as Hotel du Vin, Malmaison and Liberty. Balfour-Lynn served as chief executive until the business fell into administration in 2012. 

Alongside joint finance director Jagtar Singh and several other parties, Balfour-Lynn was found to have obscured the extent of their shareholdings through “a series of sham transactions involving offshore entities,” as reported by db in August 2024.

The regulatory body had concluded that shares constituting roughly 15% of MWB Group’s capital were, in reality, controlled by Balfour-Lynn and Singh, rather than Audley Capital Advisors as was claimed. This deception allowed the pair to exceed the 29.9% ownership threshold without making a required offer for the business, a violation of the Takeover Code.

Partner Content

Cold shouldering

As a result, both men were sanctioned and “cold-shouldered” for five years, meaning no Financial Conduct Authority-regulated business can engage with them on transactions covered by the Takeover Code. The panel also highlighted “serious breaches” of its regulations, noting that MWB shareholders had been misled. Last year, Balfour-Lynn and his associates were ordered to pay approximately £33 million, plus interest, to shareholders affected by the group’s collapse. Efforts to appeal the decision failed.

The Bankruptcy

Balfour-Lynn confirmed his bankruptcy this week in a statement to The Times: “I have, regretfully, been forced to file for bankruptcy. I am semi-retired and my wealth was tied up in MWB shares, of which I never sold any.”

A £2 million settlement proposal put forward by Balfour-Lynn was rejected by the Takeover Panel, which clarified it was not a creditor in the case. Instead, compensation is due to MWB shareholders.

Family connections

While Balfour-Lynn is no longer involved in Balfour Winery — he holds no shares or board positions — the business remains under the control of Leslie Balfour-Lynn, heiress to the Sega fortune. She operates Balfour Hospitality, which oversees the winery and other hospitality interests.

Related news

Peckham Cellars closes online business

Gonzalez Byass UK plans twist for milestone portfolio tasting

Berry Bros. & Rudd enters redundancy consultation with staff

Leave a Reply

Your email address will not be published. Required fields are marked *

It looks like you're in Asia, would you like to be redirected to the Drinks Business Asia edition?

Yes, take me to the Asia edition No