A BUSINESS owner who took out a loan of more than £1 million from his company before it ceased trading has been made bankrupt.

The director of Brighton Holiday Homes Ltd Neil Stonehill withdrew £1,024,281 over and above his salary from the company “for his personal benefit” before it closed.

Now, The Argus can reveal that Mr Stonehill, along with his wife and ex-secretary Michelle Stonehill, has been made bankrupt.

That is according to insolvency firm Quantuma, which has just released an “administrator’s progress report” for creditors.

Brighton Holiday Homes Ltd ceased trading on May 28, telling its customers their bookings would no longer be valid and leaving people in the lurch.

Eight members of staff were left without jobs.

The company, which opened in 2009, provided accommodation in the city for holidaymakers, with an emphasis on hen parties, which had to pay for their holidays six weeks in advance.

It acted as an agent, letting properties on behalf of the owners.

About 100 landlords and businesses in the city are owed sums ranging from £1 to £500,000.

Quantuma’s report states: “The joint administrators served the director with a statuary demand in July 2019 and the director was made bankrupt on September 17 2019 following the issuing of a bankruptcy petition by a third-party creditor.

“The joint administrators have received the initial report on the director’s bankruptcy in October 2019 and the value of his personal assets is currently uncertain.

“The director jointly owns several properties with his wife (who was also made bankrupt on September 17, 2019) however the equity position is unclear.”

Quantuma states that an investigation into the conduct of the company direct or has been completed.

The “confidential report” was submitted to the Insolvency Service on September 6.

Neil and Michelle Stonehill, who are company director and secretary respectively, sent an email to customers before ceasing to trade.

It said: “It is with great regret that due to the challenging economic conditions, Brighton Holiday Homes has ceased trading with immediate effect.

“You will not be able to access the property you have booked so please do not travel to Brighton unless you have alternative accommodation.”

The Argus was flooded with emails from desperate customers and furious homeowners.

In response to the collapse, business advisory firm Quantuma was appointed as joint administrators of the company.