Owners of Headway Hotel in Morecambe go into administration
The Insolvency and Companies Court heard that Carlauren Group investors put a total of £76m into projects and that £50m was unaccounted for.
According to the BBC, Carlauren’s chief executive Sean Murray has been accused of misappropriating company funds, which he denies.
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Hide AdInvestors applied to appoint administrators to control the company’s assets.
A barrister representing some of the investors alleged significant sums had been transferred into Mr Murray’s personal account.
Mr Murray, who represented himself at a hearing in London, previously told the court there were no missing millions and although money had been transferred to his personal account; he said it was being held in trust for the company.
Carlauren, which is based in Somerset, bought 25 properties across the UK, saying they wanted to set up a network of luxury care homes, among them The Headway.
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Hide AdThe scheme was funded by selling individual rooms in those properties to investors for about £100,000 a time – but most of those homes never opened.
After Judge Sebastian Prentis granted the application to appoint administrators, Mr Murray said: “I am afraid I lost control. I hope they act in the best interest of everyone.”
Carlauren managed and operated resorts, hotels, residential and care facilities, and had architecture, engineering and interior design divisions.