Craig Whyte
Encyclopedia
Craig Whyte is a Scottish
businessman and the owner of Rangers Football Club.
Whyte first entered business in a plant hire company; since then he has branched out into security, manufacturing and property, before becoming a venture capitalist. He bought the controlling interest in Rangers from David Murray
in May 2011.
firm, and in 1990 he set-up his own plant hire company. The company, Whyte Hire, was not a success though and went bankrupt in the early nineties with debts of around £300,000. Whyte recovered from this loss and branched out into security, manufacturing and property. In 1997, aged 26, he was Scotland's youngest self-made millionaire. After selling off most of his businesses, he moved to Monaco
. When he moved back to the UK (to London
), he became a venture capitalist
. The London-based
group he heads, Liberty Capital, specialises in buying distressed businesses, turning them around, and selling them on. He is chairman of a complex maze of interlinked firms from around the world thought to be worth more than one billion pounds.
A BBC Scotland
documentary aired in October 2011 claimed that Whyte had illegally been a de facto director
of a company called Re-Tex during a 7 year period when he was banned from doing so - a claim supported by the Head of Investigations at the Insolvency Service
. Prior to Re-Tex being wound up in 2003, the company made an offer to sell shares to potential shareholders at a price based on company statements the BBC alleges contained "false and misleading" information, formed from accounts signed off by fake audit
ors appointed by Whyte. The auditors were allegedly run by a convicted fraudster, and former associate of Whyte's, Kevin Sykes. Whyte's ban from being a director followed the failure of one of his companies - Vital Holdings Ltd - to produce satisfactory accounts. The investigation also alleged participation in an array of other criminal acts, including taking £100,000 from the Re-Tex account, ostensibly to pay a tax bill - a payment which was never received by the Inland Revenue
. In response to these claims Craig Whyte denied all allegations of criminality, and stated that he had only ever been a minor shareholder
in Re-Tex, and never a de facto director. Following the airing of the programme a spokesman for Whyte stated that Whyte had instructed his lawyers to "commence immediate legal proceedings against the BBC". Rangers
later confirmed in a statement to the PLUS
stock exchange that Whyte had been banned from acting as a director.
, near Grantown-on-Spey
, in the Scottish Highlands
. Restorations and renovations to the castle cost £5 million.
and previously held an executive box at Ibrox Stadium
. Speculation arose in 2010 that he might launch a bid to buy the in-debt Scottish football club. In April 2011, a £28 million deal was thought possible, but depended on agreements on how to service the club's debt (with Lloyds Banking Group
), and a potential £49 million tax bill with HM Revenue and Customs. In May 2011 Whyte said he was confident that the club would win the tax tribunal case and there would be no liability for Rangers to pay.
On 6 May 2011 it was confirmed that Sir David Murray
had sold his controlling interest in Rangers (85.3 percent) to Wavetower limited for £1. Wavetower Limited is owned by Liberty Capital, which is Whyte's holding company. The Rangers manager Walter Smith
welcomed the takeover and the stability it would bring to the club. Whyte said he was proud to be the owner of Rangers and pledged to invest £25 million into transfers over five years. Regarding the takeover Whyte said, "Obviously I'm a massive Rangers fan and have been since I was a boy. I'm here first and foremost because I'm a Rangers supporter. I also see a great opportunity and think that Rangers can be a great worldwide brand. I believe there are many commercial activities that can be expanded on."
In October 2011, Rangers withdrew all cooperation with the BBC after what the club called "repeated difficulties", describing a documentary investigating Whyte's business affairs as a "prejudiced muckraking exercise".
Scotland
Scotland is a country that is part of the United Kingdom. Occupying the northern third of the island of Great Britain, it shares a border with England to the south and is bounded by the North Sea to the east, the Atlantic Ocean to the north and west, and the North Channel and Irish Sea to the...
businessman and the owner of Rangers Football Club.
Whyte first entered business in a plant hire company; since then he has branched out into security, manufacturing and property, before becoming a venture capitalist. He bought the controlling interest in Rangers from David Murray
David Murray (Scottish businessman)
Sir David Edward Murray is a Scottish entrepreneur, businessman and former owner and chairman of Rangers Football Club....
in May 2011.
Business career
When he was 15, Whyte took an interest in financial markets, and made more than £20,000 buying and selling shares before he left school. His first job was with his father's plant hirePlant Hire
Equipment rental, also called plant hire in some countries, is a service industry providing machinery, equipment and tools of all kinds and sizes for a limited period of time to final users, mainly to construction contractors but also to the industry and to individual consumers.The equipment rental...
firm, and in 1990 he set-up his own plant hire company. The company, Whyte Hire, was not a success though and went bankrupt in the early nineties with debts of around £300,000. Whyte recovered from this loss and branched out into security, manufacturing and property. In 1997, aged 26, he was Scotland's youngest self-made millionaire. After selling off most of his businesses, he moved to Monaco
Monaco
Monaco , officially the Principality of Monaco , is a sovereign city state on the French Riviera. It is bordered on three sides by its neighbour, France, and its centre is about from Italy. Its area is with a population of 35,986 as of 2011 and is the most densely populated country in the...
. When he moved back to the UK (to London
London
London is the capital city of :England and the :United Kingdom, the largest metropolitan area in the United Kingdom, and the largest urban zone in the European Union by most measures. Located on the River Thames, London has been a major settlement for two millennia, its history going back to its...
), he became a venture capitalist
Venture capital
Venture capital is financial capital provided to early-stage, high-potential, high risk, growth startup companies. The venture capital fund makes money by owning equity in the companies it invests in, which usually have a novel technology or business model in high technology industries, such as...
. The London-based
London
London is the capital city of :England and the :United Kingdom, the largest metropolitan area in the United Kingdom, and the largest urban zone in the European Union by most measures. Located on the River Thames, London has been a major settlement for two millennia, its history going back to its...
group he heads, Liberty Capital, specialises in buying distressed businesses, turning them around, and selling them on. He is chairman of a complex maze of interlinked firms from around the world thought to be worth more than one billion pounds.
A BBC Scotland
BBC Scotland
BBC Scotland is a constituent part of the British Broadcasting Corporation, the publicly-funded broadcaster of the United Kingdom. It is, in effect, the national broadcaster for Scotland, having a considerable amount of autonomy from the BBC's London headquarters, and is run by the BBC Trust, who...
documentary aired in October 2011 claimed that Whyte had illegally been a de facto director
Board of directors
A board of directors is a body of elected or appointed members who jointly oversee the activities of a company or organization. Other names include board of governors, board of managers, board of regents, board of trustees, and board of visitors...
of a company called Re-Tex during a 7 year period when he was banned from doing so - a claim supported by the Head of Investigations at the Insolvency Service
Insolvency Service
The Insolvency Service is an executive agency of the United Kingdom's Department for Business, Innovation and Skills which:* administers and investigates the affairs of bankrupts, of companies and partnerships wound up by the court, and establishes why they became insolvent;* acts as...
. Prior to Re-Tex being wound up in 2003, the company made an offer to sell shares to potential shareholders at a price based on company statements the BBC alleges contained "false and misleading" information, formed from accounts signed off by fake audit
Audit
The general definition of an audit is an evaluation of a person, organization, system, process, enterprise, project or product. The term most commonly refers to audits in accounting, but similar concepts also exist in project management, quality management, and energy conservation.- Accounting...
ors appointed by Whyte. The auditors were allegedly run by a convicted fraudster, and former associate of Whyte's, Kevin Sykes. Whyte's ban from being a director followed the failure of one of his companies - Vital Holdings Ltd - to produce satisfactory accounts. The investigation also alleged participation in an array of other criminal acts, including taking £100,000 from the Re-Tex account, ostensibly to pay a tax bill - a payment which was never received by the Inland Revenue
Inland Revenue
The Inland Revenue was, until April 2005, a department of the British Government responsible for the collection of direct taxation, including income tax, national insurance contributions, capital gains tax, inheritance tax, corporation tax, petroleum revenue tax and stamp duty...
. In response to these claims Craig Whyte denied all allegations of criminality, and stated that he had only ever been a minor shareholder
Shareholder
A shareholder or stockholder is an individual or institution that legally owns one or more shares of stock in a public or private corporation. Shareholders own the stock, but not the corporation itself ....
in Re-Tex, and never a de facto director. Following the airing of the programme a spokesman for Whyte stated that Whyte had instructed his lawyers to "commence immediate legal proceedings against the BBC". Rangers
Rangers F.C.
Rangers Football Club are an association football club based in Glasgow, Scotland, who play in the Scottish Premier League. The club are nicknamed the Gers, Teddy Bears and the Light Blues, and the fans are known to each other as bluenoses...
later confirmed in a statement to the PLUS
PLUS Markets Group
PLUS Markets Group and PLUS Derivatives . PLUS is a London based stock and derivatives exchange providing cash trading, listing, derivatives and technology services. PLUS delivers product innovation and competitive pricing to market participants by operating dynamic, low cost base exchanges...
stock exchange that Whyte had been banned from acting as a director.
Castle Grant
Whyte owns the historic Castle GrantCastle Grant
Castle Grant stands a mile north of Grantown-on-Spey and was the former seat of the Clan Grant chiefs of Strathspey in Moray.-History:The original tower was built in the 14th century by the Clan Comyn of Badenoch. Originally a Comyn Clan stronghold, clan traditions tell us that the castle was taken...
, near Grantown-on-Spey
Grantown-on-Spey
Grantown-on-Spey is a town in the Highland Council Area in Scotland.It was founded in 1765 as a planned settlement on a low plateau at Freuchie beside the river Spey at the northern edge of the Cairngorm mountains, about 20 miles South East of Inverness .It is the main town in what was the...
, in the Scottish Highlands
Scottish Highlands
The Highlands is an historic region of Scotland. The area is sometimes referred to as the "Scottish Highlands". It was culturally distinguishable from the Lowlands from the later Middle Ages into the modern period, when Lowland Scots replaced Scottish Gaelic throughout most of the Lowlands...
. Restorations and renovations to the castle cost £5 million.
Football
Whyte is a lifelong supporter of Rangers Football ClubRangers F.C.
Rangers Football Club are an association football club based in Glasgow, Scotland, who play in the Scottish Premier League. The club are nicknamed the Gers, Teddy Bears and the Light Blues, and the fans are known to each other as bluenoses...
and previously held an executive box at Ibrox Stadium
Ibrox Stadium
Ibrox Stadium is a football stadium located on the south side of the River Clyde, on Edmiston Drive in the Ibrox district of Glasgow. It is the home ground of Scottish Premier League club Rangers and has an all-seated capacity of 51,082...
. Speculation arose in 2010 that he might launch a bid to buy the in-debt Scottish football club. In April 2011, a £28 million deal was thought possible, but depended on agreements on how to service the club's debt (with Lloyds Banking Group
Lloyds Banking Group
Lloyds Banking Group plc is a major British financial institution, formed through the acquisition of HBOS by Lloyds TSB in 2009. As at February 2010, HM Treasury held a 41% shareholding through UK Financial Investments Limited . The Group headquarters is located at 25 Gresham Street in London, with...
), and a potential £49 million tax bill with HM Revenue and Customs. In May 2011 Whyte said he was confident that the club would win the tax tribunal case and there would be no liability for Rangers to pay.
On 6 May 2011 it was confirmed that Sir David Murray
David Murray (Scottish businessman)
Sir David Edward Murray is a Scottish entrepreneur, businessman and former owner and chairman of Rangers Football Club....
had sold his controlling interest in Rangers (85.3 percent) to Wavetower limited for £1. Wavetower Limited is owned by Liberty Capital, which is Whyte's holding company. The Rangers manager Walter Smith
Walter Smith
Walter Smith, OBE is a Scottish football manager. His most recent job was at Scottish Premier League club Rangers.Smith had a relatively modest playing career, consisting of two spells with Dundee United which was split by a short time at Dumbarton.A pelvic injury meant he moved in to coaching at...
welcomed the takeover and the stability it would bring to the club. Whyte said he was proud to be the owner of Rangers and pledged to invest £25 million into transfers over five years. Regarding the takeover Whyte said, "Obviously I'm a massive Rangers fan and have been since I was a boy. I'm here first and foremost because I'm a Rangers supporter. I also see a great opportunity and think that Rangers can be a great worldwide brand. I believe there are many commercial activities that can be expanded on."
In October 2011, Rangers withdrew all cooperation with the BBC after what the club called "repeated difficulties", describing a documentary investigating Whyte's business affairs as a "prejudiced muckraking exercise".