HEALTH club le Spa is being investigated on two counts by its administrator.

Le Spa Ltd, on Gloucester Road, Stratton, has now officially entered voluntary liquidation. The decision was made at a meeting of creditors earlier this month.

However, Robert Millichap, appointed liquidator, said he is investigating the company amid allegations that le Spa Ltd used customer's deposits for membership to fund trading. Staff had allegedly been told to take membership payments by credit card so that the customers' card providers could refund the money in the event of le Spa entering liquidation.

At the meeting on July 18 he said a million £1 shares in le Spa Ltd are held by LKL Trading Ltd, a company owned and controlled by Linda Lloyd.

He added that in 2009 the company made a loss of £124,191 and that the estimated trading loss from October 1, 2009, to July 4, 2011, when it shut, was £912,303.

"Management accounts made available to me show that a debt of £803,140 owed to Le Spa Ltd as at 30 September 2009 had been replaced by a claim against Le Spa Ltd by LKL Trading Ltd of £386,469 at the date when trading ceased," he said.

"That will be a matter for investigation."

He said le Spa Ltd had simply operated the venue, with LKL Trading Ltd owning the premises and all its contents. As such, le Spa Ltd had no assets to pay creditors.

However, he urged anyone, especially creditors, who can help with the investigation to call 01432 760186