Two arrested after collapse of Gallant Building Services
29th November 2024
UK: Police arrested two men this week over an alleged investment fraud involving the collapsed Mansfield-based air conditioning specialist Gallant Building Services.
Officers carried out raids at addresses in Mansfield and the Bassetlaw area on Monday (25/11), with a fourth warrant executed in Sussex on the same day.
The two men, aged 41 and 55, were arrested during the Nottinghamshire warrants and taken into custody for questioning. They were detained on suspicion of fraud by false representation and acquiring/using/possessing criminal property but have since been bailed while the investigation continues.
Gallant Building Services was placed into administration in September with debts so far estimated to total £56m.
Gallant Building Services was principally involved in air conditioning installation, major customer being Travelodge for which it was an exclusive supplier of air conditioning for new and existing properties.
The company had a total of 78 investors whose total outstanding balance is said to be around £26m.
According to the administrator, the investments were by way of loans provided to the company in return for monthly interest payments on the capital invested. The investors, who included both private individual and corporate entities, were offered fixed term loans with a fixed return on their investments.
Concerns about the company were first raised in August by one investor, owed £1.07m, who was told that Gallant’s bank accounts had been frozen and interest payments were unable to be paid.
A subsequent winding up petition, saw the company placed into administration on September 11. Scott Bevan and Simon Chandler of Forvis Mazars and Andrew Cordon of CFS Restructuring were appointed joint administrators.
