On the go: Norton Motorcycles has gone into administration, raising questions about recouping money in three pension funds solely invested in the motorcycle manufacturer.
According to the BBC, the Leicestershire firm was reportedly struggling to pay a tax bill and faced a winding-up order.
Stuart Garner is chief executive and the main shareholder of the motorcycle manufacturing company, and former trustee of the Dominator 2012 Pension Scheme, Commando 2012 Pension Scheme and Donington MC Pension Scheme.
Dalriada Trustees was appointed by the Pensions Regulator to the defined contribution schemes in June after a “clear conflict of interest” was found by the Pensions Ombudsman, since all three funds are invested solely in preference shares of Norton Motorcycle Holdings.
Pensions Expert reported in November that Dalriada was supporting Norton Motorcycles in its fundraising activities, as this represented “the best chance of the schemes recovering their investments in full and is in the best interests of the members”.
With an amount due to members in excess of £14m, “any attempts to extract funds now from the Norton business, or indeed Mr Garner personally, are not going to generate anything close to that figure”, the company stated at the time.
Commenting on the announcement of Norton entering administration, Sean Browes, a professional trustee at Dalriada, said: “We appreciate that the insolvency of Norton Motorcycle Holdings and other companies in the wider Norton group will be of serious concern to members of the associated DC pension schemes.
“We are in dialogue with the administrators to understand the position and implications as regards to redemption of the preference share investments held by the schemes, and will look to update members as soon as we are in a position to do so.
“In the meantime, members should contact Dalriada through the usual channels if they have any questions about the schemes.”
Lee Causer, of administrators BDO, said: “We are taking all necessary steps to ensure that customers, staff and suppliers are supported through the administration process.
“Our job is to determine and execute the most appropriate strategy as swiftly as possible to protect creditors’ interests, bearing in mind the need to minimise distress for all parties.”
