Stuart Garner, former owner of Norton, pleaded guilty at Derby Magistrates Court on Monday to three charges of illegally investing money from three pension schemes into his business. He will appear for sentencing at Derby Crown Court on February 28.

Nicola Parish, Executive Director at the Pensions Regulator which brought the case, said: ”As a Trustee, Stuart Garner failed to comply with restrictions on investments which are designed to protect the funds of pension schemes. We will take action where that responsibility is abused.”

Garner, who bought the Norton name in 2008, was accused of investing pension scheme money in return for preference shares in the company between 2012 and 2013. The company fell into administration in 2020 leaving the funds, which had 227 employee members, with debts of circa £14million. Under pension rules no more that 5 per cent of an occupational scheme’s value should be put into assets connected to the employer.

The business had previously had taxpayer-backed grants and loan guarantees worth millions of pounds after being praised by government figure Steve Barclay, recently appointed Boris Johnson’s new Chief of Staff.