Currency exchange firm enters administration

Administrators are urgently seeking a buyer for one of Britain's biggest currency exchange websites, which went into administration, leaving thousands of people at risk of losing up to £10,000.

Crown Currency Exchange blamed the downturn in the travel market for their misfortunes, and around 13,000 customers estimated to be directly affected. Administrators MCR delivered the bad news that those affected should not expect an early resolution in the case and a quick return of money. Although Crown is registered as a payment institution with the FSA, it doesn't mean that customers can claim money from the Financial Services Compensation Scheme.

The Cornish-based company was founded in 2005, by husband and wife team, Peter and Susan Benstead. It offered individuals and business customers the opportunity to pre-order between £300 and £10,000 in foreign currency at a set price up to a year in advance. The last recorded accounts for the company showed a net debt of £262,000 at the end of November last year, a figure which will have ballooned by now.

Paul Clark, of MCR, said, "Like many operators in the travel sector, it has experienced a difficult trading environment during the course of the past 12 months which has been exacerbated by a further downturn and general tightening of the travel market."

The company had its bank accounts frozen by Barclays at the weekend, barring it from withdrawing or transmitting any money to customers. Mr Clark said they were attempting to contact all of those affected to advise them on their individual situations, but asked that anyone who had not heard from the company already to get in contact with them.

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