Huge debts revealed at firm backed by Money Saving Expert’s Martin Lewis

A company backed by Money Saving Expert’s Martin Lewis has crashed into liquidation owing almost £8m.

Documents filed with Companies House have confirmed that London-based Magway recently appointed Gateway as its voluntary liquidator.

According to the statement of affairs document, the firm had an estimated total deficiency to its members of over £7.7m.

Among its creditors is HMRC, which is owed £40,510, while Deloitte is also owed £35,100.

In total, the company’s creditors are owed more than £88,000.

Magway had been aiming to introduce magnet-powered pods which would carry products along pipes from distribution centres.

Martin Lewis is among the company’s backers, holding more than 21.3m shares.

Lewis is the third-largest single shareholder in the firm, behind Philip Davies and Rupert Cruise.

According to its most recent set of accounts, for 2023, Magway had net assets of £639,373, down from £1.6m, and made a loss of £6.4m.

It also employed 18 people at the end of its latest financial year.

Magway and Martin Lewis have been contacted for comment by City AM.

Martin Lewis is a financial journalist and broadcaster who founded Money Saving Expert and sold the brand in 2012. He still serves as its executive chairman.

The collapse of Magway comes after City AM reported last week that the company behind a Michelin-starred restaurant backed by Gary Neville that closed last year owed almost £1m as it entered liquidation.

The restaurant, called The Man Behind The Curtain, was located in Leeds and run by chef Michael O’Hare.

It was awarded a Michelin star in October 2015, three AA Rosettes in 2016, and attracted investment from Gary Neville.

However, The Man Behind The Curtain closed at the end of 2023 and O’Hare has since opened a new restaurant in the city, Psycho Sandbar.