The Grade II-listed building is now expected to open under an international hotel operator after being sold for £1million...

An investigation into suspected fraud at the company behind Preston's stalled Shankly Hotel development has concluded.

The Serious Fraud Office (SFO) has dropped its investigation after determining there is "no realistic prospect of conviction". The probe was launched in 2024, two years after Signature Group collapsed into administration, with estimated losses of around £140 million.

placeholder image — An investigation into suspected fraud at the company behind Preston's stalled Shankly Hotel development has concluded.

Among its flagship projects were plans for a new luxury hotel in Preston, which saw renovation works undertaken on the Grade II-listed Post Office building overlooking Flag Market.

The landmark property had been bought from Preston City Council in 2016, with planning permission approved for a 65-room hotel featuring a bar, restaurant and wedding and events suite.

However, Signature Living collapsed into administration, leaving a string of developments unfinished and investors facing significant losses. Last year, administrators for the business confirmed the sale of the former Post Office building for around £1 million.

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It is now expected to reopen under a different name after reportedly being taken on by an international hotel operator.

The SFO says no further action will be taken against four people who had previously been arrested and released under its fraud investigation.

Lawrence Kenwright, the former chief executive of the collapsed property group Signature Living. Following the collapse of his hotel and property ventures in 2020, Kenwright was declared bankrupt, though this order was subsequently discharged

An SFO spokesperson said: "Following a thorough review, we have concluded that the evidence in this prosecution no longer satisfies the Full Code Test set out in the Code for Crown Prosecutors in that there is no realistic prospect of conviction.

"This decision reflects our commitment to making timely judgements about where to focus our resources.

"This concludes the SFO's investigation into Signature Group."