CompaniesOct 31 2014

Another Harlequin firm enters administration

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Another Harlequin company has entered liquidation, the company has revealed in its update to investors this week.

The update, sent to investors via email, revealed that Harlequin Hotels and Resorts (UK) Ltd has entered voluntary liquidation. The company has said that the latest administration does not affect investors, investments or completions.

According to a spokesperson for Harlequin, this was a separate company which served as an “administrative arm that had nothing to do with investments or investor funds (hence no bank account)”.

The update said: “That is the UK administrative company and not the main Harlequin Hotels and Resorts company in the Caribbean or any of the resort development companies that entered into investor purchase contracts.

“To be clear, this does not affect investors, investments or completions. It is only a minor structural change within the Harlequin group of companies, nothing more.

It added: “This measure is one of many decisions that have been taken to safeguard the future of Harlequin and its investors’ interests. At times the process demands tough, resolute action, but each step is taking Harlequin closer to its goals and we are unflinching in our commitment to investors.”

Earlier this month, Harlequin Management Services (South East) Ltd, the UK sales are of the embattled overseas property development business which trades as Harlequin Property, entered liquidation after it was put into administration 18 months ago.

Harlequin Property was the primary UK sales agent for Harlequin’s Caribbean-based resort development companies. It is not regulated by the Financial Conduct Authority.

Harlequin filed a notice of intention to appoint an administrator at the High Court of Justice in April 2013. At the time, a spokesperson for the company said the administration “will not threaten” investments.

The administration came after an alert from the FFCA, the first of several issued by the regulator, to advisers over clients which were invested in self-invested pensions weighted heavily to Harlequin property assets.

donia.o’loughlin@ft.com