CAPA has been instructed to conduct audits on sites occupied by one of the UK’s largest timeshare operators, after prolonged lockdowns and travel restrictions hit the firm’s finances.
As administrators of Club La Costa UK, BDO has appointed CAPA to undertake rates audits, as the business restructuring firm tries to maximise recoveries for the creditors.
Club La Costa sold timeshares and managed timeshare resorts in Spain, the UK, Austria, Turkey and the USA.
Before the pandemic had enforced the closure of resorts and the cessation of sales activity on timeshares, Club La Costa had already encountered financial problems relating to a case in the Spanish courts relating to timeshares and how they were sold. This led to a legal dispute with customers and claims that were led on behalf of consumers by claims management firms.
When these legal costs mounted, and the business was unable to generate revenue during the pandemic, financial issues worsened.
Ultimately Anthony Nygate and Mark Shaw of BDO were appointed administrators of Club La Costa UK in November 2020.
They have now instructed CAPA which will see CAPA’s Audit team deploy bespoke software to inspect all data related to business rates paid to local authorities at the sites Club La Costa operating from.
The team will undertake a forensic analysis of costs to discover if any overspend, due to errors or anomalies, can be recovered for the creditors.