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England’s Discover Leisure Claims Insolvency

November 4, 2011 by · Leave a Comment 

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.”

 

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Discover Leisure’s Financial Troubles Worsen

October 14, 2011 by · Leave a Comment 

English-based RV dealer Discover Leisure has pulled its staff from the NCC Motorhome & Caravan Show, after admitting that it may not be able to solve its current financial problems.

Caravan Times reported that the retailer, which has five dealerships across the North of England and headquarters in York, made a worrying announcement to the London Stock Exchange today (Oct. 14) at 8 a.m.

“The board now believes that it is increasingly unlikely that an acceptable solution to the funding issues that the group faces can be secured in the necessary timeframe,” the statement read.

Furthermore, the AIM-listed company withdrew its shares, after they had plummeted to a 52-week low of 23 pence, down nearly 48% so far this week.

Earlier this week the company announced poor sales figures for the three months to August 2011 and revealed that it is seeking additional funding.

In reaction to this troubling news, Caravan Times spoke with Louise Wood, spokesperson from the National Caravan Council, who confirmed the situation at the Birmingham NEC. “At present, no Discover Leisure staff are at the NCC Show. Their stand is not available at the moment; it is very much a ‘wait and see’ situation.”

She added, “If anyone has recently paid a deposit to Discover Leisure, we would advise them to contact the company in the first instance. We are awaiting further clarification of the situation, but at present we have not had confirmation that Discover Leisure has gone into administration.”

 

 

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