ECC experts interpret January 2026 FRP report on CLC liquidation proceedings

The third official Progress Report on the Liquidation of Club la Costa (UK) PLC has been released by FRP, the accountancy firm responsible for the process. We have been anticipating its arrival since November, and there appears to have been good reason for the delay.

Controlled communication

This report contains the expected, non-committal language about what funds may be available for creditors. By now most creditors understand that this is a prosaic balancing act for the Liquidators. FRP are obliged to produce a report but also have to be careful not to reveal actual progress to the subjects of the liquidation. In this case CLC.

For example when FRP writes: "It is currently uncertain as to whether there will be sufficient funds available to make
a distribution to preferential creditors." This could sound terrifying for someone who does not understand the necessity of how these reports are constructed.

What FRP have written is (obviously) factually correct. It is currently uncertain as to whether there will be sufficient funds…, etc etc. ‘Currently’ being the key word. The money has not been retrieved… yet.

ECC's analysts are far more focussed on the paragraph entitled Investigations. This is where possibly the most encouraging updates have been revealed.

Investigation funded

FRP explains that they have “positive advice on the merits” of bringing claims but needed funding to pursue said claims.

Then the report drops the bombshell that an agreement is now in place with third party litigation funders to provide sufficient funds for the Liquidators to pursue claims. This is a huge deal. In fact, as stated later in Appendix C, LBAs (Letters Before Action) are already being issued in this regard.

Third party litigation funders are notoriously hard-nosed and risk-averse. They will only inject their money, as well as their clients’ money into litigation when they calculate a return.

FRP even confirm that both they and their legal advisors consider the claims to have “strong prospects of success”.

We know from experience that FRP, like any Liquidator is not given to hyperbole. The opposite is generally true, in that they will understate their position wherever possible for the reasons mentioned above. The phrase “strong prospects of success” therefore is extremely telling. We interpret this as a rare glimpse into the growing confidence levels of FRP’s Liquidators regarding the potential outcome.

Timescale indication?

The report quickly reverts to measured legal language, re-clarifying that they are “not in a position to disclose further information as it may prejudice the outcome.” This again is to be expected. With the vast amounts of money at stake, the sensible option is to reveal as little information as possible to their targets.

The next positive note is that FRP promised to update creditors in subsequent reports, adding: “and potentially beforehand”.

With this possibility of an earlier resolution being floated, we are cautiously optimistic for a positive update to this process before the next report is due

Finally, FRP reiterates that potential creditors are still able to submit claims.

Expert comment

Greg Wilson, CEO of European Consumer Claims (ECC) encourages current or former CLC owner who has not already submitted a claim to do so now with the end potentially in sight.

"Now is the right time to get on board for people who have not yet made up their minds whether or not to pursue a financial claim against CLC." says Wilson. "Litigation funders have been secured. FRP have the money they need to do their work.

"With 'strong prospects of success', would you rather be on the outside looking in? Or part of the litigation and in line for your share of any money retrieved…?"

Any current or former CLC owner who would like more information about claiming compensation in CLC's Liquidation proceedings can get in touch with ECC for free, confidential advice.