Blackmore Bond falls into administration owing savers £45m

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Another mini-bond in administration: Blackmore owes savers £45m after promising 9.9% returns on property projects

By Daily Mail City & Finance Reporter

Published: | Updated:

Another savings firm offering so-called mini-bonds has tumbled into administration, spelling potential disaster for investors.

Blackmore Bond, which owes savers around £45million, had failed to hand out interest payments to its investors since October last year.

Assurances that it would resume the payments in 2020 fell by the wayside, and a group of angry investors this month made an application to wind up the company so it would be forced to hand back the cash.

Blackmore took a minimum of £5,000 from more than 2,000 savers, promising them returns of up to 9.9 per cent from investing their money into property projects

Blackmore took a minimum of £5,000 from more than 2,000 savers, promising them returns of up to 9.9 per cent from investing their money into property projects. 

It had a portfolio of 12 sites, but almost all are running behind schedule and are in various stages of completion.

Concerns over mini-bond firms were raised after London Capital & Finance (LCF) collapsed last year amid allegations of fraud, owing bondholders more than £200million. 

Blackmore used the same marketing agent as LCF, a company called Surge.

 

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