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