Iconic £250m holiday park’s future thrown into doubt as parent firm COLLAPSES into administration
THE FUTURE of a holiday park and its £250 million development is in doubt after its parent firm collapsed into administration.
Now, its owners are under investigation by the City of London Police who are examining the firm’s finances.
Penrhos Coastal Park in Wales has long been a popular tourist destination.
It was acquired by a Southport based company named Seventy Ninth Group, which is a holding company for a large group of businesses.
However, the company has fallen into administration and is under investigation by the City of London Police.
The holding company has allegedly been offering loan rate notes to investors with high interest return over a fixed period.
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Allegedly, investors would be approached by a third party who offered the opportunity for a fixed return of 12 per cent - if they invested £10,000.
Another deal which involved a £25,000 investment with a fixed return of 15 per cent was also allegedly offered.
Four people connected with the company have been arrested and released on bail.
Now, the fate of Penhros Coastal Park and its £250 million development is at risk.
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The firm had planned to build 492 premium holiday lodges, a restaurant and leisure amenities as well as a spa, pool, gym and sports pitches.
Seventy Ninth Group allegedly planned to forgo external funding and would develop the site using its own finances.
The Sun tried to contact the Seventy Ninth Group via telephone but the line didn’t connect and, according to Google, the firm’s site in Southport is permanently closed.
A spokesperson for the Seventy Ninth Group had previously told the Echo: "The Seventy Ninth Group categorically denies any wrongdoing following claims recently made public by the City of London police.
"Since the events of last week, we have been working diligently with our legal advisers to address the claims made as part of the investigation, while also providing information to business partners and other stakeholders.
"The company has also appointed independent forensic accountants to conduct a comprehensive review of the business. The Seventy Ninth Group remains committed to servicing its clients in the UK and across the globe."
The City of London Police have refused to comment on the investigation, choosing to remain in a “holding position”.
A spokesperson for the force said: “It’s still an active investigation and so as such we wont be commenting on it.”
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Previously, another spokesperson for the City of London Police had said: "The Seventy Ninth Group tell investors that funds are used for real estate, wealth and aviation.
“Another area of business advertised under The Seventy Ninth Group is mining for natural resources in countries such as Canada and Guinea."
