Arena legal fight firm goes into liquidation

Montpellier’s future was thrown into doubt last month after receivers were called in to take charge of a portfolio of its land and property.

Now it has emerged that insolvency specialist Begbies Traynor has been appointed as the firm’s liquidator.

A notice published in the London Gazette, which formally logs UK company information, says Montpellier passed a resolution that it be voluntarily wound up at a meeting on August 7 at its head office in Harrogate.

Ms Fletcher’s firm was ordered to pay £2m in costs to Leeds council in April after losing a £40m damages claim over the way the competition to develop the city’s new concert arena was handled.

The council issued a winding-up petition against Montpellier on June 25 and later said it had given the company “every opportunity” to come up with the money.

Its petition prompted the firm’s largest creditor, banking giant RBS, to bring in receivers with the aim of securing the best possible return on several sites owned by Montpellier.

Leeds City Council has said it intends to pursue Ms Fletcher personally for the money it is owed.

The council’s winding-up petition has been discontinued following her firm’s decision to go into liquidation.