The Hackney Empire has cleared long-standing debts after Lord Sugar helped it fight a David-and-Goliath battle with insurers.
The Empire has suffered years of financial problems since builders employed for its grand refurbishment went bust in 2003 and Aviva — then Norwich Union — refused to pay up on a £1.1 million bond.
Lord Sugar, who was already a donor to the restoration plans, stepped in with an interest-free loan to fund more than £1 million worth of work still to be done and pay suppliers and contractors — and then backed the Empire in a legal battle with Aviva over the claim.
In March Aviva was denied permission to take the case to the Supreme Court and ordered to pay up on the disputed £1.1 million bond. This week, at the High Court, the Empire was further awarded £470,000 in interest.
Clarie Middleton, the Empire’s chief executive, said: “The win against Aviva is of enormous significance to Hackney Empire and sets the seal on a new chapter in the organisation’s history. It has allowed us to clear balance sheet debt that has been hanging over the company since 2004.”
Solicitors CMS Cameron McKenna acted for the Grade II*-listed theatre on a no-win, no-fee basis and QC David Thomas on a partial conditional fee. Ms Middleton thanked them for their “determined handling of the case” and Lord Sugar “for his consistent generous support”.
Solicitor Rupert Choat said: “This was a David-versus-Goliath battle but we had a giant of our own in the shape of Lord Sugar.” He said the case only happened because of no-win, no-fee, which new rules will prevent in future.
