Following Club La Costa´s announcement in October that it was dissolving its timeshare sales workforce in the UK, Turkey and Spain – the first company liquidations are now underway in Spain. On the 18th December official notice was published that the following Club La Costa related companies had applied for bankruptcy proceedings:
- Club La Costa (UK) plc en España (Spanish Branch)
- Continental Resort Services, S.L.
- Paradise Trading, S.L.
- California Beach Hotel, S.L
What does this mean for owners in the Spanish resorts? The resorts themselves are owned by CLC World Resorts, which CLC member news reports as “unaffected by last year´s closure of timeshare sales companies, … remaining available for CLC members and guests to use – without exception”. The good news therefore is there is no need to panic if you plan on using your CLC membership or ownership over the long term.
Over the past few years Club la Costa has been moving clients towards newer models of real estate investments. This is part of a strategy to avoid being sued by members who were sold illegal timeshare contracts. Indeed, it is convenient for the CLC group if the companies that sold these products cease to exist – as they are parties to the contracts and risk being sued for compensation.
Therefore, if you are considering legal action to nullify contracts with Club La Costa, the recent news will be relevant to your legal claim and your chances of receiving compensation awarded by the courts.
Club La Costa – options open to owners
If you are worried about a CLC contract that you have signed – perhaps because it is based around an illegal points system, or because it has a long and illegal duration (we have seen as far out as 2074!!) – make sure you contact The Nordic Consulting. One of our lawyers can review your paperwork, without charge, and give you the professional advice and options open to you.