Sunday Times rich list shows credit crunch hit North East tycoons

Apr 25 2009 by Ben Guy, The Journal

MILLIONS of pounds have been wiped from the bank balances of the region’s super rich in the past 12 months.

The credit crunch and global economic downturn have seen a major decline in the fortunes of the North East’s wealthiest, the Sunday Times rich list will show tomorrow.

Newcastle United owner Mike Ashley – once a billionaire but now a mere multi-millionaire – has seen the biggest decline in worth.

The 44-year-old has seen the value of his assets plummet from £1,398m to £700m, but still comes out as the richest person in the region.

The decline in his empire, which leaves him as the equal 60th richest person in the UK, is attributed to losses speculating on HBOS banking shares as well as his ownership of United.

Second in the region is the Fenwick family, whose Newcastle-based department store saw increased profits of £41.7m for 2007/08, leaving the business with net assets of just under £400m.

New money beats old money in the race for third place on the list, with Duncan Bannatyne edging out the Duke of Northumberland.

The Dragon’s Den star is actually the only person on the region’s list to experience a rise in fortunes, up £10m to £320m. His wealth is built on hotels, health clubs, day spas and a bar.

The Duke continues to be valued at £300m, with his wealth centred on the 120,000 acres he owns around his ancestral seat in Alnwick.