Expensive acquisitions led to Hertfordshire broker’s collapse
Hertfordshire-based brokerage Castle Personal Insurance Brokers Ltd went into administration on 9 May.
The company was headquartered in Hemel Hempstead and operated a second site in Cwmbran, South Wales. Tony Murphy and Paul Boyle of Harrisons, a recovery and insolvency specialist, were appointed joint administrators of the firm.
Shortly after the appointment, the administrators sold the assets of Castle Personal Insurance Brokers Ltd to Taylor Francis Ltd, a Buckinghamshire-based broker and agent.
Harrisons director Tony Murphy said: “We will work closely with Taylor Francis Ltd to ensure that the transfer of certain assets runs smoothly.”
The company, which recorded a turnover of £1.2m in 2010, was driven by an acquisitions-led growth strategy, which finally led to its demise. Several expensive acquisitions failed to deliver expected benefits and came with significant hidden costs.
Customers who have purchased a policy through Castle Personal Insurance Brokers Ltd are advised to check their insurance policy.
All 18 employees have been made redundant.