‘Accounting Issues' to be inspected in QMH-SLUMP

An investigation has been launched into the near-collapse of hotel chain Queens Moat Houses (QMH).

The group (which includes the Caledonian hotel in Edinburgh, pictured) ran into severe difficulties in 1992 following an apparent collapse of profits.

Shares in the company were suspended in March 1993 at 47.5p "pending clarification of its financial position" and it was consequently restructured and put under new management.

The Institute of Chartered Accountants in England and Wales has referred the investigation to Christopher Dickson, executive counsel to the accountants' Joint Disciplinary Scheme.

He is putting together a team of accountants to help him look into "serious accounting issues… which led to prior year-end adjustments in the financial statements for the year ending 31 December 1992".

The team will also look at "the share dealings of a member who was a director of the company".

It will be up to Dickson to decide whether the case should be heard by an independent tribunal.

"My job is to see whether disciplinary proceedings should be brought against Queens Moat Houses. I would expect to complete the investigation some time next year," he said.

A statement from the Joint Disciplinary Scheme said the referral of the matter to it by the Institute of Chartered Accountants in England and Wales "should not be construed as meaning either that a view has been formed that a prima facie case exists against any member or member firm, or that such a finding is likely".