Lawrence Kenwright, the founder of the Signature empire, has been banned as a company director after investors lost more than £4.8m. The Insolvency Service said Mr Kenwright, 60, allowed Signature Works Gold Limited to distribute promotional material containing false and misleading information, causing significant losses for investors.
Investor losses and disqualification
Kenwright, now of Sankey Road, Maghull, signed a disqualification undertaking just days before he was due to appear for trial following investigations by the Insolvency Service. The undertaking – a legally binding agreement where directors do not dispute certain matters of unfitness alleged by the Secretary of State for Business, Innovation, Science and Trade – means he is banned from acting as a company director for the next five years.
Signature Works Gold Limited was wound up in December 2022 after Insolvency Service investigations into the company uncovered concerns about investors being misled. When the company was wound up, it had assets of less than £100,000 and liabilities of £4,848,654, reflecting the scale of the losses suffered by investors.
False marketing and property ownership
Signature Works Gold Limited was incorporated in January 2017 and sold desk space to investors in three Liverpool city centre properties: The Bling Bling Building on Hanover Street, Arthouse Hotel on Seel Street, and 60 Old Hall Street. The company would rent out the working space to members of the public with the rental income intended to fund returns to investors. However, investor returns stopped being paid after September 2019.
The Insolvency Service said marketing material stated or implied that investors would gain a legal interest, registered at Land Registry, in the three properties they acquired desk space in. In reality, investigators found that Signature Works Gold Limited did not own any registered freehold or leasehold interest in any of the three properties. The buildings were instead owned by separate companies – Signature Hanover Street Limited, Signature Living Arthouse Square Ltd and Signature Living Residential Ltd – of which Mr Kenwright was the sole shareholder.
The Insolvency Service said that although the marketing material referred to Signature Works Gold Limited being part of the wider group of Signature companies, it was not part of the legal group structure. Mr Kenwright was the connection across the companies, being the main or only shareholder, thus giving them common ownership.
Investigation and impact
The Insolvency Service found that Kenwright had "failed to ensure adequate stewardship and corporate governance" of the company he directed. Kevin Read, chief investigator at the Insolvency Service, said: "Lawrence Kenwright's failures as a company director had serious consequences for investors, who suffered losses of more than £4.8m as a result of false and misleading marketing material.
"While Kenwright is not accused of direct fraud, his conduct nevertheless falls well below the standards we expect of company directors. Directors have a responsibility to ensure investment information issued in their company’s name is accurate and can be relied upon. The Insolvency Service will continue to take action against directors who fail in those responsibilities, helping to maintain confidence in the UK's business environment."
The Secretary of State for Business, Innovation, Science and Trade accepted a disqualification undertaking from Kenwright, and his ban started today, Tuesday August 18. The director disqualification will remain in place until 2031.
Kenwright has been the director of almost 100 companies, including more than 60 under the Signature brand, with the group behind the creation of the Shankly and Dixie Dean hotels in Liverpool. The Signature Group operated for more than seven years, buying up predominantly historic buildings within the UK for redevelopment into luxury hotels, residential apartments and office spaces.
The ECHO reported last month that a major fraud investigation by the Serious Fraud Office (SFO) into the Signature Group had been closed. In February 2024, the SFO raided homes and made arrests as it launched a probe into the Signature Group, which included the Signature Living company. Three properties in Merseyside and Greater Manchester were raided and four arrests were made amid the probe into the company, which the SFO described as "a business that attracted over a thousand UK and international investors in the redevelopment of iconic landmarks including Belfast's Scottish Mutual Building and the Coal Exchange in Cardiff".
Signature Group, which was run by Mr Kenwright and his wife, Katie, held a portfolio that also included Millennium House in Liverpool as well as a cruise liner that was marketed as a "flotel" to be moored off Canary Wharf in London and would travel to Ibiza. The business collapsed into administration with losses of up to £140m. A spokesperson for the SFO said: "Following a thorough review, we have closed our investigation into Signature Group as there is no longer a realistic prospect of conviction. This decision reflects our determination to act decisively and focus our resources on cases where we can achieve the strongest outcomes for victims and the public."
