Roy Peires accused of delusion over bullish email amid CLC insolvencies and legal chaos

Club la Costa founder Roy Peires sends puzzling email message to members after a year of silence, causing widespread confusion among timeshare industry experts and CLC owners alike.

Troubled times

The disjointed missive begins by blaming COVID for 'bruising' the travel business' and compelling CLC to 'stop sales of new timeshare products.' Commentators point out that the rest of the travel industry has recovered to pre pandemic levels while CLC complains about being 'forced to look at the overall business plan', and making 'changes to survive.'

Roy also blames 'interference by so called Claims Management Companies' for his timeshare operation's 'significant loss of revenue.'

This perspective doesn't appear to reserve any culpability or responsibility for CLC World themselves, despite their having single-mindedly ignored clearly defined Spanish laws for decades.

Instead, CLC consider that the company's tribulations are actually the fault of the claims companies who have worked for decades to bring CLC to justice.

Big spender...

In the email letter, which was sent to all Club la Costa members on July 17th, Roy expounds on CLC's recent expensive sounding overhauls of 'technology and systems.' He glibly catalogues other major, new facility additions including: 'new receptions, new restaurants, additional Guest Service Centres and member lounges, outdoor cinemas, games rooms and much more.'

There are also boasts of CLC's ambitious plans for the future, including 'a new spa, and a waterpark,' and even entire 'new resort developments' as well as reinvesting in 'both our main resorts on the Costa del Sol and Tenerife.'

There is talk about thought out decisions by CLC which involves them deciding to 'sell a few of our smaller properties' to finance these impressive sounding expansions. This seems to evidence that CLC owns properties it is able to sell (and that the remaining properties are larger than those being sold) to finance the company's ambitions.

... while CLC dodge their creditors?

Club la Costa, several of whose component companies are battling various stages of bankruptcy, liquidation or insolvency has debts amounting to tens of millions of pounds.

The serpentine entities that make up CLC world are suffocating under an avalanche of legal judgments following the timeshare sales operation's choice to ignore Spanish consumer laws designed to protect consumers for over twenty years.

Insolvency practitioners FRP, who are administrating the liquidation, are tasked with examining CLC's finances and recovering money from CLC’s remaining assets, and connected companies and persons, in fulfilment of their duties as liquidators, which will likely include paying money back to CLC’s victims.

"You have to wonder what FRP and the CLC creditors, including people who are owed money awarded to them by courts of law must be thinking about all this spending," comments Andrew Cooper, CEO of European Consumer Claims and leader of the fight for justice for tens of thousands of illegally sold CLC owners. "If CLC say they have money for expansions, refurbs, improved tech and even new resort developments, then I'm sure FRP will be very interested in pursuing that money."

Vanishing without trace

The confusing email talks about CLC providing members with 'wonderful places to holiday and the opportunity to make cherished lifelong memories.'

There are references to a new real estate project on the Golden Mile in Marbella called Royal Marbella Beach Resort, a luxury townhouse development on La Cala Golf and construction beginning on a patch of land in Tenerife.

A CLC member reading the Peires email could be forgiven for having difficulty reconciling its message with his or her actual experience visiting the properties.

While Peires seeks to reassure about continuity, and even expansion, bewildered members look out of their apartment windows to see all traces of CLC being removed from the resorts. Every Club La Costa sign, including the giant roadside display in the flagship Mijas development has been replaced with Wyndham signage. Sunningdale Village has been renamed 'Wyndham Golf del Sur.'

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Roy mentions towards the end of the email that the group's real estate arm, previously called CLC Estates is now trading as 'IDILIQ Estates.'

"To a any organisation proud of their reputation, this 'debranding' would make no sense," comments Andrew Cooper. "A company's good name and positive public brand is hard won and if they were happy with their public identity they would not abandon it easily. There has to be a reason why CLC seems intent on erasing all visible traces of themselves."

"FRP will obviously have read Roy's email too, which they will likely have found as a helpful and overt, open admission that CLC still has considerable funds and assets."

What now for CLC members?

If you are a CLC member concerned about the mixed messages surrounding the company's resort ownership, solvency and future, get in touch with our team at the Timeshare Advice Centre.

We can help clarify your situation, and help you understand your options.