Wednesday, August 13, 2008

Bogus Holiday Club in Wales wound up!

Three North Wales based companies that provided timeshare-type products, have been wound up in the High Court following an investigation by the Companies Investigation Branch (CIB) of the Insolvency Service.

CIB’s investigation found that Key Select Holdings Ltd, Key Select Services Ltd and Key Select Promotions Ltd had traded as Key Select Club which operated a scheme whereby customers, for a fee of between £3,000 and £9,000, would receive each year a certain number of points which could be redeemed for holidays. The investigation found that the scheme received £107,250 in joining fees from members but after just 12 months of trading the officers abandoned the companies without providing the accommodation and holidays that the members had contracted for. The members of the Key Select Club were also misled into believing that the Key Select Club was associated with a third party holiday provider, that the Key Select Club would operate until 2062, that 10% of the subscription fees would be deposited into an escrow account which did not exist and that upon ceasing to trade in March 2007 that their membership would be transferred to another provider although no such agreement had been made.

CIB’s investigation was unable to establish how many members the Key Select Club had although only 10 members successfully booked holidays and a further 5 members attempted to book holidays but were unsuccessful.

In addition, due to the abandonment of the companies and the absence of books and records the investigation was unable to account for the joining fees. The companies also failed to comply with various requirements of the Companies Act 1985 and appeared to be insolvent.

The registered office of Key Select Promotions Ltd, Key Select Services Ltd and Key Select Holdings Ltd which were incorporated on 22 and 23 September and 4 October 2005 respectively, is at County Arcade, 24 Meliden Road, Prestatyn, Denbighshire, LL19 9RT.

The petitions against Key Select Promotions Ltd, Key Select Services Ltd and Key Select Holdings Ltd were presented on 5th June 2008 under s124A of the Insolvency Act 1986. The companies were compulsorily wound up by the court on 29th July 2008.

The Insolvency Service carries out confidential enquiries on behalf of the Secretary of State for Business, Enterprise & Regulatory Reform through Companies Investigation Branch.

The Insolvency Service administers the insolvency regime investigating all compulsory liquidations and individual insolvencies (bankruptcies) through the Official Receiver to establish why they became insolvent. The Service also authorises and regulates the insolvency profession; deals with disqualification of directors in corporate failures; assesses and pays statutory entitlement to redundancy payments when an employer cannot or will not pay employees; provides banking and investment services for bankruptcy and liquidation estate funds; and advises ministers and other government departments on insolvency law and practice.

All public enquiries concerning the affairs of the companies should be made to: The Official Receiver, Public Interest Unit, PO Box 326, 17 - 21 Chorlton Street, Manchester, M60 3ZZ. Tele: 0161 934 4182
Email: piu.north@insolvency.gsi.gov.uk

Further information about the work of The Insolvency Service is available from http://www.insolvency.gov.uk

Source: The Insolvency Service

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