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Hut Group boss Matt Molding has lent millions to local councils

The local council provides a huge loan to billionaire Matt Molding, founder and head of the besieged online store The Hut Group

  • Warrington lends Molding Capital another £ 18 million, or £ 200 million
  • Molding Capital is now the board’s largest lending impact
  • The council says the loan is reliable, but it is unknown what the money is used for

Exposition: Matt Molding has repaid about 25 million pounds of the original municipal loan

The local council extended a huge loan to billionaire Matt Molding, founder and head of the besieged online store The Hut Group.

The Labor-controlled council of Warrington agreed earlier this month to lend another £ 18 million to private company Molding Capital Limited, owned by Molding.

It was one of a series of loans totaling £ 200 million issued for the benefit of a businessman, and represents the board’s largest credit risk.

The council’s documents, published by The Mail on Sunday, say that the new loan is “fully secured … by a real estate portfolio.” It is unknown what the loan is used for.

The spokesman added that the board considers Molding Capital Limited a “good credit risk”.

About £ 25 million of the board’s original loan was repaid. Molding is reportedly a Conservative party donor, becoming a landlord of THG – with brands including Cult Beauty and Myprotein – following a controversial sale and leaseback deal ahead of THG’s £ 5.4 billion stock market placement in 2020.

The deal brings Molding £ 20 million a year to lease 30 commercial properties. He also received board approval for a new plastics processing plant.

THG insists that Molding personally has never been a Tory donor. It says THG, the company he founded, has donated to a number of political parties.

Shares of the Manchester Group have fallen nearly 80 percent since the placement amid concerns about governance, strategy and management oversight.

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Hut Group boss Matt Molding has lent millions to local councils

Source link Hut Group boss Matt Molding has lent millions to local councils

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