I help to run a not-for-profit summer music school and we had paid £2,000 for an afternoon at Aqua Park Suffolk in memory of a colleague who died this summer.
The company then closed the park, cancelled our booking and did not refund any of our money within the seven days specified in the terms and conditions.
We now discover that Aqua Park Suffolk Ltd has been put into administration and there is little to no chance of getting our money back. It’s a huge sum to lose.
However, the parent company, Aqua Parks Group Ltd, is happily continuing to trade with its other two water parks in Cardiff and Rutland. This seems grossly unfair – surely the parent company should be able to refund our money if it is still able to continue trading?
Or is this just a perfectly legal (if annoying) way of using UK company structure to avoid liabilities?
DB, Surbiton
Aqua Park Suffolk was forced to close the inflatable obstacle course on Alton Water in July for the second time in a year because of blue-green algae in the water. It promised customers automatic refunds, but many complained to the local press that they had been left out of pocket.
The company announced it had ceased trading a month later. The parent company, Aqua Park Group Ltd, which advertises two other water parks on its website, failed to respond to requests for a comment.
It shares the same directors and registered address as Aqua Park Suffolk, but unfortunately company law means that neither they, nor the company, are liable for your loss.
Since a limited company is an independent legal entity, separate to those who run it or to associated companies, your rights when it goes into administration are very limited.
“Where a parent company continues to trade, even with the same owners and members, your ability to hold them liable for the actions or failings of the defunct company does not change,” says Samantha Jenkins of DAS Law.
“The usual remedy is to contact the administrator and lodge a claim. The administrator may be able to compensate you for any money owed by the company. Unfortunately, your success will depend on the amount of money the company has left after paying off other debts, which may take priority.”
The administrator, LB Insolvency Solutions, says: “Liquidation has come about due primarily to the aqua park continuing to have health and safety problems outside of the company’s control. Unfortunately, this has led to a number of customers unable to obtain refunds of payments made on bookings.
“The Aqua Park Group, which is independent to Aqua Park Suffolk Limited, has offered enhanced arrangements at an alternative venue by way of compensation to try and assist customers.”
The nearest of the two other aqua parks is 110 miles away in Rutland. Customers who have paid all or part of the cost by credit card can seek to reclaim their money from their card issuer under section 75 of the Consumer Credit Act 1974.
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