Primrose Associates in administration
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Mortgage broker Primrose Associates has been put into liquidation following concerns over debt levels with fears that over £4m of transferred client funds may have been lost.
KCBS insolvency practitioners John Kelmanson and Karyn Jones, were appointed as joint liquidators yesterday following a meeting with company creditors and shareholders.
Primrose Associates’ managing director Peter Carron was a former senior partner of St James’s Place. One of his other companies, Evaluate Technologies, which was put into administration earlier this year, is understood to be the development company for IT projects that were funded by Primrose.
Kelmanson estimates that Carron has lost between £8-10m of investors’ funds over three years, all of whom claim they were unaware their money was being lent to another company. He says there is in excess of £5m debt in Evaluate with over £4m due to private investors.
He says: “The meeting was well attended and was civil but hostile understandably. Investors believed they were making investments in projects by Primrose Technology Ltd in land, property and financial markets and all denied any knowledge that this money was going to be lent to another company to invest in information technology which begs some very substantial questions. What Mr Carron appears to have done is wholly inappropriate at the very least.”
The liquidator will conduct and investigation into the company and its directors in conjunction with the Evaluate liquidator over the next six months and report to the appropriate authorities if and when necessary.
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