Primrose Associates goes under leaving debts of £5m in its wake
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Primrose Associates was placed into liquidation last week, leaving behind debts of £5m.
KCBS was appointed liquidator for the mortgage brokerage after a meeting of creditors last week.
Peter Carron, managing director of Primrose, recently placed one of his other firms, Evaluate Technologies, into administration.
John Kelmanson, managing partner at KCBS, says money that was invested in Primrose was subsequently used to develop technology systems at Evaluate.
He says it is not clear whether Primrose had authorisation to use investors’ money in this way.
Kelmanson says: “Some of the money invested in Primrose was passed on to Evaluate to develop its technology system. Sadly, all that money has gone.
“We are working with investors and Evaluate’s administrators to try and salvage some money from Evaluate and any other companies but it looks unlikely.”
He says he is not sure if the Financial Services Authority knew what was happening at Primrose but adds that some of its creditors have had contact with the regulator and are believed to be in discussions with it.
Mortgage Strategy revealed in May that Evaluate was going into administration.
It is understood that Comment Technologies, which is also owned by Carron, has bought the rights to Evaluate’s technology and will continue to develop it.
Valentine & Co is administrator for Evaluate which had a winding up order logged against it by HM Revenue & Customs, although this has now been dismissed.
Evaluate has several high-profile clients including Confused.com and Thisismoney.co.uk, for which it provides sourcing facilities.
Carron was unavailable for comment.
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