Primrose Associates will be put into liquidation later today as concerns emerge about the security of client cash.
Nominated liquidator John Kelmanson is concerned that client money from has not been kept ring-fenced in a client account. The Financial Services Authority was aware that money from Primrose Associates clients may be at risk, said Kelmanson of accountants KCBS.
‘I think this is a very serious matter,’ said Kelmanson. ‘I think it was invested in certain areas where it received no return.’ Around 60 creditors are expected to attend a meeting later this morning where Kelmanson is expected to be appointed as liquidator.
‘Clients have been investing in Primrose for certain projects but they appear to have come to nothing,’ said Kelmanson. ‘Primrose has been losing money heavily in the last few years. I’m not sure if there is any business to sell.’
Kelmanson said creditors had lost a considerable amount of money after investing in Primrose Associates. The owner of Primrose Associates, Peter Carron, who is also a partner with upmarket salesforce St James’s Place was expected to attend the meeting later today. Carron was unavailable for comment.