Following action taken by the Finance Conduct Authority (FCA), Lendy Ltd appointed Damian Webb, Phillip Rodney Sykes and Mark John Wilson of RSM Restructuring Advisory LLP as administrators this afternoon.
According to the FCA there is an ongoing investigation into the circumstances that have led to this action.
It is unclear how tonight’s news will now affect the running of this year’s Cowes Week.
It was announced in June 2017 that Lendy Ltd had agreed with Cowes Week Limited (CWL) to be the title sponsors of the world-renowned event for a period of 3 years. It now seems almost certain that a new sponsor will be needed for the Isle of Wight event in the years ahead.
Earlier in the week Island Echo approached Cowes Week Limited to discuss the sponsorship deal with Lendy amid rumours of changes afoot.
In response, a spokesperson for CWL said:
“Lendy and Cowes Week Ltd are currently bound by the terms of their three-year sponsorship agreement which runs until August 31st 2019. That means that, as things stand, this year’s event will be known as Lendy Cowes Week.
“However, following recent discussion we expect there to be reduced Lendy marketing activity at the regatta and we do not anticipate that Lendy will attend.
“This year’s regatta will continue exactly as planned with a full racing programme and shoreside schedule”.
Cowes Week Limited have been approached again tonight for an updated statement.
UPDATE SATURDAY – In a statement issued today, Cowes Week Limited has said:
“Cowes Week Limited (CWL) is understandably disappointed to learn that Lendy has entered administration and will not be able to meet its contractual obligations to what would have been the final Cowes Week of its three-year title sponsorship deal.
“CWL has been monitoring Lendy’s financial difficulties for some time and has made robust contingency plans to deal with this eventuality. While there may be some short-term financial implications, the event itself is under no threat and will remain one of the highlights of the British social and sporting calendar, as it has for the last 194 years.
“This year’s regatta will take place in August as usual, with a full programme of racing and shoreside entertainment, featuring the hugely anticipated UK edition of the global SailGP F50 championship and preceded by the prestigious King’s Cup regatta.
“Discussions regarding sponsorship for 2020 and beyond are already underway with several interested parties. In due course, CWL looks forward welcoming a new headline partner for Cowes Week and to beginning the next chapter in the evolution of this world-famous historic regatta”.