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The owner of one of Jersey’s best-known antiques and home-interior firms has decided to sell up after falling victim to a banking scandal that has had a devastating impact on his health and wellbeing.
David Hick hopes to find a buyer who has the right creative and business skills to take over and continue to grow his eponymous business.
It has expanded significantly over the past 48 years and is now based in a purpose-built 16,000 sq-ft showroom at Carrefour Selous in St. Lawrence.
But although that growth was driven by increasing demand for high-quality kitchens, exclusive home furnishings and creative interiors, it came at a high cost.
This was because 15 years ago, as many business owners do, Mr Hick took out a loan to fund his expansion plans.
Pictured: David Hick Interiors has been based at Carrefour Selous in St. Lawrence for 45 years.
That transaction with a major high-street bank led to a decade of torment, struggle and mental anguish, and a David-versus-Goliath battle which is not yet resolved.
Mr Hick said: “I was a victim of the mis-selling scandal, having been sold a ‘swap’ in 2007."
He continued: “I have been in dispute with the bank for nearly 10 years, seeking redress for the huge disruption this caused to the running of my business.
“This has impacted heavily on my health, to the point that I am now offering my business for sale.
“It is a great business and has an enormous following in the island. I truly hope to find someone who will enjoy the business as much as I have done.”
Mr Hick was one of 30,000 small-to-medium sized businesses across the British Isles to fall victim to a financial scandal which has forced some of the UK’s best-known banks to pay out £2.2 billion in compensation and damages to firms that were mis-sold a form of payment protection.
Back in the 2000s, banks sold ‘interest rate hedging products’ to supposedly protect customers against rising interest rates and provide greater certainty on loan repayments.
These businesses, who needed help to expand, were not given a choice by their lenders: they had to purchase a ‘swap’ in order to receive the loan.
But interest rates did not rise - on the contrary, when global markets crashed in 2008, interest rates plummeted, and business owners discovered that the ‘swap’ had, in fact, been the wrong product and they should not have been sold it.
The banks made millions of pounds packaging up their customers’ debt and selling it on. And those trading in the swaps reaped huge rewards in bonuses and commission.
In 2012, the UK Financial Conduct Authority found that over 90% of sales to non-sophisticated customers had not complied with at least one of its regulatory requirements.
Later that year, it reached agreements with many of the banks involved, which forced the latter to review their processes and compensate customers where mis-selling has occurred.
Billions were paid out but a subsequent investigation of the FCA’s own review found that thousands of businesses deemed ‘sophisticated’ investors by the regulator – and therefore not paid compensation – should not have been and were entitled to be repaid.
Over a difficult decade, Mr Hick kept running the business, greeting his customers and staff with a smile and assured professionalism when he knew that both he and the firm was staring into the abyss.
Beneath his veneer of calm, he felt like his hands were tied behind his back, the knot tightening as he fought against a huge financial institution.
As the battle wore him down, his staff stepped up to help run the business; something he is eternally grateful for.
“I owe it to my staff to get fresh blood in to take on this business, which I have absolutely loved running for the past four decades. The business is going in a great direction,” he said.
The battle for damages continues but poor health has forced him to decide to sell his business, for his own sake as well as the continuing prosperity of David Hick Interiors.
Pictured: David Hick hopes to pass on his business to someone from a younger generation who shares his passion.
“The business is trading well and has enormous potential to develop further,” he said. “We enjoy a very loyal and discerning customer base, a wealth of good suppliers and extremely professional and dedicated staff.”
Mr Hick would love to see someone from a younger generation who shares his passion for furniture, fabrics and kitchens take on the business to keep it as the go-to place in Jersey for top quality interior products and service.
Mr Hick added that while an outright sale would be his preference, he would be prepared to help a suitable person or persons with the sale, but it would still require a reasonable initial investment.
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