Chief executive Sean Murray has denied a claim that £50m invested into the Carlauren Group Ltd has gone “missing”.
Mr Murray told an Insolvency and Companies Court hearing brought by the group’s investors that the luxury care home provider was “saveable”, the BBC reported.
Investors, who have said they had put £76m into the business, have applied to the court to put Carlauren into administration so they can control its assets.
The Yeovil, Somerset based group, which includes a diverse portfolio of resorts, hotels, residential and care facilities, and has architecture, engineering and interior design divisions, announced the closure of its Tyndale House (pictured) in July due to financial losses that resulted in many of its 26 workers being paid late (see Care homes close as Carlauren Group goes into administration).
A barrister representing some of the investors claimed a significant amount of money from them had been transferred into Mr Murray’s account.
Representing himself, Mr Murray said the money was being held in trust for the company.
The Carlauren CEO said he had been “honourable” and the allegedly missing money had been reinvested in the business.
He said he had trusted the company directors to run the care and property side of the business but most of the group’s homes were left unoccupied because they had not been ready for residents.
A decision on the investors request to put the business into administration is expected today.