Health club le Spa being investigated

HEALTH club le Spa is being investigated on two counts by its administrator.

Le Spa Ltd, on Gloucester Road, Stratton, has now officially entered voluntary liquidation. The decision was made at a meeting of creditors earlier this month.

However, Robert Millichap, appointed liquidator, said he is investigating the company amid allegations that le Spa Ltd used customer’s deposits for membership to fund trading. Staff had allegedly been told to take membership payments by credit card so that the customers’ card providers could refund the money in the event of le Spa entering liquidation.

At the meeting on July 18 he said a million £1 shares in le Spa Ltd are held by LKL Trading Ltd, a company owned and controlled by Linda Lloyd.

He added that in 2009 the company made a loss of £124,191 and that the estimated trading loss from October 1, 2009, to July 4, 2011, when it shut, was £912,303.

“Management accounts made available to me show that a debt of £803,140 owed to Le Spa Ltd as at 30 September 2009 had been replaced by a claim against Le Spa Ltd by LKL Trading Ltd of £386,469 at the date when trading ceased,” he said.

“That will be a matter for investigation.”

He said le Spa Ltd had simply operated the venue, with LKL Trading Ltd owning the premises and all its contents. As such, le Spa Ltd had no assets to pay creditors.

However, he urged anyone, especially creditors, who can help with the investigation to call 01432 760186

LUXURY Cirencester health club le Spa has closed and looks set to enter liquidation.

Furious members, some who had only just taken out annual membership, were left reeling this week after workmen moved in on Monday to enclose the venue in a ring of steel fencing.

In a recent planning appeal to convert the Stratton facility into a 60-bed care home, directors Linda Lloyd and Max Banham said the business was crippled by financial problems. An appeal decision is still pending but on Monday Ms Lloyd and Mr Banham took the decision to close.

Members claim the first they knew of the decision was when fencing was installed around the site with signs saying “Private. Keep out”.

A statement on the entrance to le Spa from Ms Lloyd and Mr Banham reads: “le Spa is now closed. le Spa Ltd, the company which operated le Spa, is likely to go into insolvent liquidation.

“Notice of a meeting of creditors will be sent out to creditors during the course of this week. If you are a creditor and you have not received the notice by Monday, July 11, please contact the company at its head office.”

At last month’s planning enquiry, le Spa representative Paul Tucker said club membership had halved in the past two years and that the future of the business was “not looking rosy.”

The future for its 35 employees now looks uncertain and the Standard understands that a staff meeting was held on Monday.

A full 12-month membership for le Spa costs £683.

Member Hazel Hopes, of Avening, said members would be left out of pocket with no warning whatsoever.

“I have been a member of le Spa for a number of years, a regular attendee and have not received, via email, phone, post or, indeed, in person, any notification of le Spa’s imminent closure.

“The behaviour of Linda Lloyd and her cohorts is despicable.”

One member, who wished to remain anonymous, said she saw a vast amount of equipment and furniture being emptied from the site on Monday.

Colin Forbes, who campaigned against plans for le Spa to be turned into a care home said: “It is a sad sight to see it closed down and I feel sorry for both the staff and the members. I hope its problems are sorted but it makes no difference to the objection of local residents to the care home plans.”

Le Spa’s website was also suspended this week and phone calls remained unanswered. Ms Lloyd was unavailable for comment and Mr Banham declined to comment and said he would issue a statement “in due course”.