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07/04/2009
Hegarty Companies Go Into Administration
A Co Londonderry-based business family has run into financial difficulties.
Despite being listed in last year's Sunday Times Rich List with "a fortune of £40m" part of Patrick Hegarty's company is going into administration.
Along with his brother, Hugh, the family began investing in property in Northern Ireland in the 1960s and developed the W G Mitchell company by moving into the Scottish market in the late 1990s - specifically developing a focus on hotels.
Although the brothers now own a property business worth £500m, they have had 30 of their estimated 75 companies placed into administration.
Ernst & Young, who have been appointed as the administrators, said the companies had been operating in a "challenging market place".
Part of the W G Mitchell portfolio includes the 200,000 sq ft Richmond shopping centre in Derry (pictured), which is leased to another company.
It has been confirmed that trading at the shopping centre will continue as normal.
"They have been finding it increasingly difficult to meet the significant backlog of creditors as well as ongoing debt service obligations.
"The business model under which the companies have been operating was becoming unsustainable," said a statement from the administrators.
However, Ernst & Young also said it would continue to operate the companies whilst considering options for selling them.
The Mitchell portofolio also includes two hotels in Edinburgh's Grassmarket, Charlotte Square and George Street in Edinburgh and properties in Glasgow, Perth and Fraserburgh in Aberdeenshire.
(BMcC/JM)
Despite being listed in last year's Sunday Times Rich List with "a fortune of £40m" part of Patrick Hegarty's company is going into administration.
Along with his brother, Hugh, the family began investing in property in Northern Ireland in the 1960s and developed the W G Mitchell company by moving into the Scottish market in the late 1990s - specifically developing a focus on hotels.
Although the brothers now own a property business worth £500m, they have had 30 of their estimated 75 companies placed into administration.
Ernst & Young, who have been appointed as the administrators, said the companies had been operating in a "challenging market place".
Part of the W G Mitchell portfolio includes the 200,000 sq ft Richmond shopping centre in Derry (pictured), which is leased to another company.
It has been confirmed that trading at the shopping centre will continue as normal.
"They have been finding it increasingly difficult to meet the significant backlog of creditors as well as ongoing debt service obligations.
"The business model under which the companies have been operating was becoming unsustainable," said a statement from the administrators.
However, Ernst & Young also said it would continue to operate the companies whilst considering options for selling them.
The Mitchell portofolio also includes two hotels in Edinburgh's Grassmarket, Charlotte Square and George Street in Edinburgh and properties in Glasgow, Perth and Fraserburgh in Aberdeenshire.
(BMcC/JM)
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