HMRC has launched a legal bid to wind up the partnership of controversial property developer Richard Hayward and his wife Karen Athay, claiming the partnership is unable to pay its debts. However, Mr Hayward denies that they are insolvent.
Background on Richard Hayward
Mr Hayward, 75, was a prominent figure in corporate life during the 2000s. The Penarth-based entrepreneur was involved in major developments including two leisure complexes – Cardiff's Millennium Plaza and Swansea's Salubrious Place. He has also been at the centre of several controversies. In the 1990s he was banned from directing companies for three and a half years for wrongful trading. In 2012 he was convicted of putting tenants at risk of asbestos exposure, and in 2014 one of his companies was convicted over health and safety crimes after a labourer fell while working on luxury flats.
Mr Hayward also faced criticism after it was revealed he presented a £900,000 investment opportunity to a double amputee who then received zero return.
Legal Proceedings
Civil proceedings have been served against Mr Hayward in two separate cases. One is HMRC's winding-up petition against the partnership of him and his wife. The High Court petition claims the partnership is unable to pay its debts to HMRC. However, Hayward stated: "The partnership is not insolvent and is defending the proceedings. It appears that a process server may have lied on oath." When asked what he meant, he replied: "The process server stated on oath that he effected service at the office at a time when the office was closed and locked up."
The other case against Mr Hayward and Mrs Athay was filed by a Manchester-based firm called Rel UK Holdings, alleging a breach of fiduciary duty by the pair. In response, Mr Hayward said: "It is correct that Rel UK Holdings Limited, which appears to be a vulture fund (certainly I have had no previous dealings with it), has today served proceedings. Those proceedings will be robustly defended."
Hayward's Business History
Hayward has been a prolific company director since 2001 when his disqualification from running businesses ended. He has been involved in 49 companies, 36 of which have since been dissolved. The firms behind his Salubrious Place scheme went into administration owing a combined £32.2 million. Last year, it was reported that Hayward faced accusations at Cardiff's civil court over his tax affairs, use of government funding, and treatment of staff. One of his former accountants alleged he engaged in deception to afford luxuries such as supercars, boats, and a private jet. Three other former employees made allegations about his conduct, with two accusing him of "aggressive" behaviour towards employees. Hayward denied all allegations, branding them "lurid" and "unsubstantiated" claims from "minor witnesses" in the trial.
The central issue of the trial was his former business partner Craig Lloyd's claim that Hayward wrongly cut him out of profits from a business park development. Judge Andrew Keyser rejected Mr Lloyd's claim over the allocation of profits but made no finding on the wider allegations made by former staff members. The judge did note that one of the former accountants who made allegations against Mr Hayward had shown "unconcealed hostility" towards him while giving evidence.
Rel UK Holdings has been approached for comment on its claim against Mr Hayward and Mrs Athay.
