Owners of Penrhos park accused of ‘taking advantage’ of site to ‘lure investors’

The company behind plans for a luxury holiday resort at Penrhos, near Holyhead, has been accused of “taking advantage” of the beauty of the Anglesey site to lure investors – before going bankrupt.

The 79th Group, based in Southport, purchased the coastal site in January, describing it as their “most ambitious project yet.” But within three months, the company had collapsed into administration, leaving the future of the park uncertain and thousands of investors facing heavy losses.

Local resident Oswyn Williams told S4C’s Y Byd ar Bedwar programme that the park is too valuable to be risked.

“It is an exceptionally important place for people. It is a haven for nature, and I would like it to stay that way,” he said. “They have taken advantage of us, using this lovely place to attract people to give money.”

‘Loan notes’

The company sold loan notes to investors, supposedly secured against assets in real estate and natural resources, including Penrhos.

Among those who bought in were a couple from north Wales, Angharad and Alun – not their real names – who now fear they have lost more than £400,000 of their savings.

“It has made us sick. We have been left in a desperate situation,” Angharad said. “Our lives have been affected in such a way that I can never forgive the business for what they’ve done to us.”

The couple began investing a decade ago, starting with small sums before building up to larger commitments as interest rates increased. By February, they had £430,000 invested – money they say they have not seen since the company’s collapse.

“It really hurts,” said Alun. “It’s likely that we will have to go back to work at the exact time you hope you will be able to retire.”

Fraud investigation

In February, the City of London Police launched a fraud investigation into the 79th Group and arrested four people connected to the company. Administrators estimate around 3,700 investors are affected, with more than £200 million owed.

Anglesey Council chief executive Dylan J. Williams said the future of the private site remained unclear. “Local people have enjoyed the site for many years and continue to do so today,” he said. “However, it should be remembered that the site is private land and it is the owner who will make decisions about its future.”

The 79th Group has not responded to requests for comment. The City of London Police said their investigation is ongoing.

Y Byd ar Bedwar: Colli Penrhos, Colli Popeth will be broadcast on Monday 20 October at 8pm on S4C, S4C Clic and BBC iPlayer, with English subtitles available.