Wrekin chairman's businesses falter

Wrekin Group chairman David Unwin's business empire was faltering today as two more of his companies were heading for liquidation following the collapse of the Shifnal construction firm.

Mr Unwin, who also owns the Derbyshire-based Tamar Group which bought Wrekin in 2007, runs a network of connected companies across the country focusing on land and property development and equipment and plant hire.

Administrators for Wrekin Group and its subsidiary Wrekin Construction told a meeting of creditors in Telford yesterday that although the investigation was centred on the Shifnal-based companies, it was also concerned with other companies connected to Wrekin and its directors.

About £2 million of Wrekin's money was invested or transferred to other companies in the 12 months prior to it going into administration.

Ian Best, administrator for Ernst & Young, said Wrekin subsidiaries Watson Dallas Windows Solutions and Toft Johnson went into administration last month.

"There was an investment of around £2 million of Wrekin Group's funds in other business interests and those interests are primarily Kingstone Homes, Toft Johnson, Watson Dallas Windows and Britannia Land Investment. About £2 million of the group's available funding was used to invest in those businesses or in the assets that those businesses subsequently purchased."

Mr Best confirmed two of Mr Unwin's related companies were due to go into liquidation today, namely Equatrek UK and Britannia Management Services, both based in Derbyshire.

Mr Best added: "There are a further two or three companies that if they are not able to repay the sums which appear to be due, particularly to Wrekin Construction, then it is the intention of the administrators to ensure those companies are placed into liquidation or other appropriate insolvency proceedings. We can then get a better view of where the funds have gone into those companies and subsequently were dispersed."

He added: ". . . if any companies are unable to repay amounts, we will take proceedings to establish where those funds are."

Mr Unwin today refused to comment. His solicitors were also unavailable.

By Business Editor Amy Bould