Cowes Week sponsor Lendy enters administration

Lendy was in the third of a three-year title sponsorship deal with Cowes Week

The main sponsor of the annual Cowes Week yacht regatta has gone into administration.

Joint administrators were appointed to peer-to-peer lending company Lendy following an investigation by the Financial Conduct Authority.

Lendy organised crowdfunded loans through its website which were used to fund property development.

A Cowes Week spokeswoman said the event had made "robust contingency plans" and would go ahead as planned.

Lendy was in the third of a three-year title sponsorship deal with the event.

The Cowes spokeswoman said organisers were "understandably disappointed to learn that Lendy has entered administration and will not be able to meet its contractual obligations".

Event under no threat

She added: "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."

One of the biggest regattas of its kind in the world, Cowes Week attracts more than 100,000 people to watch and compete in racing off the Isle of Wight. This year's event starts on 10 August.

Announcing its sponsorship in 2017, Lendy said it had "grown dramatically" over the previous five years.

Its website now shows a message requesting creditors to contact administrators.