Harlequin, the company that owns Buccament Bay Resort, has applied in the United Kingdom for its sales arm to go into administration, the British website, Echo, has reported.
Administration functions as a rescue mechanism for insolvent entities and allows them to carry on running their business. It is an alternative to liquidation — when the company is brought to an end and its assets and property redistributed.
But the company, whose chairman, Dave Ames, is a British and Vincentian citizen, maintains that its businesses registered in the Caribbean, which own and plan to build resorts in the region, will continue.
It blamed negative publicity for the decision to put the sales arm into administration but said the move could still secure clients’ investments.
On Monday, the company informed the High Court in London of its intention to appoint administrators for Harlequin Management Services (South East) Ltd.
“The company is or is likely to become unable to pay its debts,” director Carole Ames said in a statement.
“Due to unfounded negative publicity in the public domain that has been instigated since 2011, the day-to-day UK sales business of Harlequin Property has become increasingly challenging, to the point that it is now almost impossible,” Ms Ames further said in the statement.
“The underlying business model of the Harlequin group is strong and the directors are confident that, with the external finance and property completions anticipated, our investors will see significant development at our resorts in the near future.
“Investors can be assured that the company sees no reason why these circumstances would threaten their investment with Harlequin. In fact, the measures set out above are a means of further securing their investments from external and contrary interests,” she said.
The move has prompted fears over the future of at least 6,000 investors’ deposits, many paid through personal pensions, and around 40 jobs at one of Harlequin’s offices in the United Kingdom, Echo reported.
In St. Vincent and the Grenadines, a number of persons have complained about not being paid by Buccament Bay Resort for goods and services provided.
Harlequin Property, has taken more than 300 million pounds in deposits from at least 6,000 investors for off plan luxury holiday accommodation across the Caribbean since 2006.
But the company has built around 300 properties and is being investigated by police, the Serious Fraud Office, and the Financial Services Authority in the United Kingdom.
Recently, around 40 investors served statutory demands on Harlequin for monies owed to them, which could have lead to a winding up petition if left unpaid.
Earlier this month, Harlequin said it has temporarily stopped work on a highly publicised resort in Barbados, citing an on-going US$13 million legal battle in Ireland over alleged misappropriation by a former contractor.
The firm also said that in a separate move it is restructuring its business operations in Barbados and has shut its offices there.
This Buccament Bay Resort issue doesn’t seem to have an end. The recent worldwide investment scams are giving investors second thought in putting out more funds. This company is dead, unless or until they stop blaming bad publicity for their failure.
I am sure they didn’t plan to fail, but what they did was fail to plan. It cannot be business as usual, until they go back and examine where things went wrong.
Its clear all is not well with this company and its just matter of time before the jig is up. Lets hope when the sh-t hits the fan, the completion of Buccament resort and the payment of lands and workers have already settled. This is another Ottley Hall in the making and we can only hope that Gonsalves was a tad bit smarter than Mitchell in the money dealings. I am just saying.
It was gobbledegook enough (not from IWN) till I got to the beginning of the 4th paragraph where the Git blamed “negative publicity.” Then I stopped (for real). Enough already. (I might go at it again later. I dono.)
I’m thinking it looks like, from the first 3 paragraphs, it is now more than before the Git needs the armed Black Squad and their dogs to sick on the negative publicists.
Besides idle gossip – and you can rule that out, trust me – how does one get negative publicity?
SURPRISE, SURPRISE
Teacherfag, tell is how this is another Ottley Hall in the making.
When you do, I will show you how SILLY and EMPTY your claim is.
**THINKING to SELF, it is a GOOD THING that these FELLAS are just SILLY BLOGGERS masquerading as individuals that persons should take seriously**
How about some input from VINCYPOWA, he has had lots to say, given plenty of mouth on the subject in the past.
I feel sorry for the Francis boy, every good thing eventually comes to an end, the end is in sight, for Harlequin and for him.
What say you ‘cattlehead’ got anything to add? Bye for now ‘O’ lowly IRS dodger. They are definitely coming for you.