What does HSC's liquidation mean for Anfi membership or compensation claims?

Hermanos Santana Cazorla (HSC) has gone into liquidation. How does this affect existing Anfi clients' compensation claims against the company?

Grupo Santana Carzola (GSC) is still trading

The Santana Cazorla company which owns Anfi shares (50%) is GSC, not HSC. Once upon a time, HSC held administrative positions at Anfi, but at the time of its liquidation, it had no connection with the huge timeshare company. GSC does own 10% of HSC shares, but again this should not technically affect the finances of the Anfi Group.

Despite the companies being separate, many owners are concerned about the finances of Santana Carzola as a whole. After all, if HSC has gone into liquidation, does it mean financial difficulties across the rest of the empire? And if so are there negative implications for Anfi memberships or compensation claims against the company?

Anfi has been through tough times

Anfi is one of many timeshare resorts having to pay sizable amounts of compensation to mis-sold former owners. Anfi ignored new laws created in 1999 to protect consumers from high pressure sales and now they paying the price for that choice.

So far tens of millions of pounds in compensation have been awarded against them in hundreds of legal victories for wronged consumers. Anfi were recently accused of criminally moving assets in a fruitless attempt to avoid paying the compensation awards.

Also, despite Anfi once being the most successful single site timeshare sales operation in the world, turning over €120 million in annual sales, the figure has dropped to a fraction of that amount.

Today's holiday consumer is shunning the expensive and outdated timeshare holiday model, preferring the freedom and lower costs of booking through regular sites instead. Companies like Anfi have lost the huge revenue stream of new member sales and now rely on the annual maintenance fees to stay in business. The compensation awards against them have exacerbated an already difficult precarious position for the timeshare business.

Experts watching closely

"On paper Anfi should be fine," says Andrew Cooper, CEO of European Consumer Claims (ECC) "The operation of the club would not be directly affected by HSC closing down, although Anfi are absorbing heavy losses in compensation awards against them.

"People undergoing current compensation claims against Anfi will be safe in my opinion. Once their claim is registered it is a legal liability for Anfi no matter what happens to the company.

"Whilst I personally don't see Anfi going under, people are understandably nervous after so many major timeshare companies have gone into administration or closed down sales over the last few years. Diamond have ceased all new timeshare sales in Europe. Several Club La Costa companies, along with Silverpoint and Azure have gone into liquidation. I have a feeling many more are headed the same way. The industry is not in great shape

"Anyone who is thinking about taking a claim against Anfi for mis-selling and is concerned about the company's health, the best advice is to contact a reputable claims firm as early as possible for a free, confidential chat."