ADMINISTRATORS HAVE been appointed to nearly 30 subsidiaries belonging to a multimillion-pound commercial group owned by Derry businessmen Patrick and Hugh Hegarty.
Ernst Young has confirmed it has been appointed to a number of subsidiaries operated by WG Mitchell. It is believed the group operates in the region of 75 different subsidiary companies.
The privately-owned property company is estimated to have a £500 million portfolio.
WG Mitchell has been a significant property investor in the North since the 1960s. It expanded into the Scottish market in 1997.
The company currently has a number of major hotel, retail and office investments throughout the UK.
In Northern Ireland it is best known for the Richmond shopping centre in Derry; in Scotland it has been involved in the acquisition of some leading hotels.
Ernst Young said the affected subsidiaries would continue to trade as usual until a decision was reached regarding their future.
“The business model under which the companies have been operating was becoming unsustainable,” the administrators stated.
