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 of the Insolvency Service.
CIB's investigation found that Key Select Holdings Ltd, Key Select Services Ltd and Key Select Promotions Ltd, based in Meliden Road, Prestatyn, 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.