English wine mogul Richard Balfour-Lynn has been declared bankrupt after he was unable to pay millions in compensation to investors linked to a stock market scandal. The Takeover Appeal Board ordered Balfour-Lynn to compensate investors for deceit and wrongdoing revealed at his property investment company.
Balfour-Lynn, who founded Balfour Winery in Kent, stated he did not possess the means to cover such high compensation levels. As a result, he filed for bankruptcy. In a statement to The Times, the 71-year-old businessman expressed shock at his plight, indicating that he had managed his debts throughout his life.
Previously known for his success in property and retail, Balfour-Lynn owned the notable department store Liberty in London. His financial activities encompassed leadership of MWB Group, which operated Liberty and the Hotel du Vin and Malmaison chains, as well as providing serviced offices throughout the UK.
The Takeover Appeal Board determined that he acted improperly in collaboration with two other executives to gain control of the company that entered administration in 2012, failing to disclose the full extent of their shareholdings and neglecting to make required offers under takeover rules. Together, they were ordered to provide £33 million in compensation to MWB shareholders.
While the other two executives have already been declared bankrupt, Balfour-Lynn attempted to appeal, offering to pay £2 million toward the compensation. However, his appeal was rejected in August, leading to his official bankruptcy last week.
He lamented that eligible shareholders would likely receive no compensation after the board dismissed his proposal to use funds from his wife, Leslie, an heiress to the Sega video games empire, to pay the owed amount. Following his bankruptcy, Leslie remains the sole owner of Balfour Winery.
Balfour-Lynn noted that his wealth was largely tied up in MWB shares, and he had not sold any during his business ventures. His £2 million offer could have potentially offered relief to those affected by his past decisions aimed at rescuing the company during the financial crisis 15 years ago.