A Claims Management Company

Mis-Sold investment - Store First

Latest update: 4th July, 2019 (The Insolvency Service)

Case Points

Total amount invested

The Serious Fraud Office estimated that £120 million was invested in Storage Pod Schemes.

Why did people invest in it?

Investors were sold on the basis that by purchasing, and then renting, storage pods, they would see high profits within a six-year period. Store First marketed themselves effectively, using celebrity endorsements and investor statistics to draw in customers.

Why was it mis-selling?

Clients were attracted by the high returns offered but the scheme was sold without properly identifying the risks to investors.

Potential value of cases

Unknown.

Summary

Store First Ltd was incorporated in 2010, with the goal of overturning the traditional self-storage industry in the UK. It offered the opportunity to invest in purpose-built storage facilities that overcame issues that had been found in the industry previously, such as poor facilities, and high risk of break-ins. Investors were able to purchase and own the units and then rent them to consumers to generate income. In total, 15 facilities were constructed.

Clients were informed that their investments would achieve the forecasted profits of 8% for the first two years, then 10% or higher in following years. The Self Storage Association UK voiced serious concerns about Store First mis-advertising and mis-selling services as early as 2014.

In 2017, the Serious Fraud Office opened an investigation into the storage pod scheme. On 30th April, 2019, the Manchester High Court ordered that Store First be wound up in the interest of the public. In May 2019, Manchester High Court ordered the company to be liquidated for consistent mis-selling of investments.

You are likely to have a potential claim on the basis of advice from a regulated firm. The claim above is only an example of a potential claim. Each claim is judged on its individual merits and as such, we cannot guarantee that your individual claim will be successful or that you indeed may have grounds for a claim.

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