Customers who paid deposits to English RV retailer Discover Leisure LLC using anything other than a credit card are unlikely to get their money back, according to a report by Out&About Live.
The motorhome and caravan dealer went into administration on Oct. 14 – midway through the NEC show – leaving many customers unsure about what would happen to their deposits, their ordered vehicles, spare parts they had paid for and even their motorhomes that were left with the company for repairs or for storage over the winter. Discover was trading up to the evening before it went into administration.
Since then, Out&About Live has been receiving reports from readers who have paid deposits for new motorhomes, ordered (and paid for) accessories and spare parts, and even motorhome owners whose vehicles are in Discover’s possession; whether that be in its repair center or storage facility.
The administrator, KPMG, has told Out&About Live that: “Those who paid by credit card should contact their credit card company about a refund. Customers who have paid on debit card or cash will be unsecured creditors of Discover Leisure. Unfortunately it is unlikely there will be a dividend for unsecured creditors.” As administrator, KPMG has no legal obligation to repair any motorcaravans in its care.
“Equally the administrators will be making contact with such customers (including storage customers) once they have finished assessing each individual case to ensure assets are returned to the correct owner.”
Discover had signaled that it was finding the going tough. It said to its shareholders that it had “faced challenging conditions” and that it had been trying to secure additional capital.
However, after failing to secure that extra capital, trading of its shares was suspended and KPMG was appointed as administrator.
Now, it is unclear what will happen to Discover’s 250 employees, who were working across its five northern-England branches. In a statement it said: “The directors and management will be working with the administrators to try and ensure that the business is saved in part or as a whole and as many of its employees as possible maintain their jobs within the business.”
KPMG has said that it is “seeking a sale, which may be part or all of the business.”