On 14th May 2025 Derby City Council announced that St James Street (Derby) Ltd would be the developer on a £10m project to “breath life” into a number of properties in the St James Street / Sadler Gate area.

It was reported that St James (Derby) Ltd had been “supported” by Derby City Council (DCC) and the Future High Streets Fund.

The “support” from DCC, was in the shape of a registered loan (mortgage) in order to buy the properties from Clowes Development.

St James (Derby) Ltd is owned by Marc and Rebecca Brough and, based on the last set of published accounts (31 May 2024) is a dormant company with £2 ( two pounds) in the bank!

The Broughs jointly own Staton Young Holdings Ltd ( previously Marc Brough Holdings Ltd) which successfully secured the long term lease on Allestree Hall from Derby City Council.

The Broughs also own Charjen Capital Ltd which acquired the 200 acre Horsley Lodge Golf Club in December 2023.

Prior to Covid, in 2019, the Broughs founded Cubo Holdings which operates premium co-working and serviced office spaces.

Cubo started making losses in 2022/23 and was bought out by a new company, Project Maddox TopCo Ltd, which was financed by Lister Capital plc and which retained the Broughs as shareholders; on 21st March 2025 the listing at Companies House confirmed that Russell Rigby, the Council’s long term property consultant (on Becketwell Regeneration, Springwell Square, Aida Bliss Factory Transformation, amongst others) is a shareholder of Project Maddox TopCo Ltd.

Rigby was also co-director with the Broughs at Quantum Facility Services Ltd.

Project Maddox TopCo Ltd is in a dire financial state.

In the 14 months to 31 May 2024 it made an £8.5m loss on £10.6m turnover; its admin expenses were £4m greater than the turnover. The group has overall net liabilities of £8.4m however this is flatered by £21.8m of goodwill from the buy-out of Cubo Holdings. Its real balance sheet net libailities are over £30m; this is represented by bank loans to the same amount, accruing interest at, between 6-15% pa.

The directors formally published a Solvency Statement at Companies House as part of its share capital reduction proposal to confirm that the company could pay all of its debts.

Comment

The circumstances surrounding many of Derby City Council’s property transactions are not transparent.

The background to the sale of the ill-fated Allestree Hall, to Marc and Rebecca Brough, is conveniently opaque; it took just 3 months from the initial advert to a confirmed sale in December 2024, shortly after he had secured Derby City Council’s financial support to buy the properties on St James Street/Sadler Gate. The Cabinet approved the sale of Allestree Hall on the basis that the buyer would preserve and develop the building in a sustainable way.

“Proposed purchasers will be required to provide proof of finances, not only for the acquisition of Allestree Hall, but also supply evidence that the requisite funds are available to refurbish the Hall. Business Plans will also be expected to demonstrate that whatever proposition is being brought forwards is deliverable and sustainable.”

Cabinet Paper 4 December 2024

Why and how did the Council choose to support the Broughs, and entrust them with Allestree Hall, when their overall business situation looks incredibly fragile and vulnerable? Their previous experience is confined to Business Centres and Office Space and not wedding venues. How did the Council validate its business proposition?

Whilst there is nothing inherently wrong about Russell Rigby having commercial connections with the Broughs, it does raise questions as to how the Council is managing any conflict of interest.

Derby City Council often hides behind “confidentiality” in any detailed questioning despite the requirement to be as transparent as possible on contracts. Why you might ask?

It is the role of a local authority to be seen to be correct and proper in all of its transactions; it is not good enough that information and detail is held secretly by a few legal officers in the Council assuring the tay paying public that “it’s all ok”

It must also look ok, and this doesn’t…