English administrators called in to deal with the stricken RV retailer Discover Leisure have revealed that unsecured creditors who lent to the company are likely to miss out on nearly $55 million in claims, according to Caravan Times.
A report from the company’s creditors has shown that East Yorkshire company owes millions to NatWest and Black Horse, Insider Media said.
Former employees of the company, meanwhile, are claiming more than $392,000 after the business went bust in October, leaving around 240 people unemployed.
The KPMG report has revealed that Discover has debt with NatWest to the tune of $16 million, while Black Horse, the lender which financed Discover’s vehicle stock, is owed a further $11 million.
Now, administrators Paul Flint and Mark Firmin have said that repayments are “highly dependent upon the realisations from the freehold properties and land,” the news provider reported.
The administrators themselves, who sold off the last $1.5 million of Discover Leisure stock in a fire sale last month, are still owed over $361,000 in costs and expenses.
Meanwhile, four former Discover Leisure employees have set up their own caravan servicing business in a bid to get themselves back to work after their employer shut up shop.
English-based trailer and motorhome retailer Discover Leisure expects losses before tax to narrow for the 12 months ended Aug. 31, but conceded it is pursuing financing options as its business comes under increasing pressure.
According to a report by Sharecast, the group said it witnessed the usual seasonal uplift in trade in the second half and trading for the last 12 months was in line with the expectations at the half-year stage.
“However, profits in the second half of the year have not been sufficient to offset the previous winter losses and therefore the finances of the business have come under increasing pressure,” it said in a company statement.
Loss before tax is anticipated to come in at $1.5 million compared to $1.8 million in 2010. It predicts turnover for the period to slip to $49.8 million from $52.3 million previously.
“With low season conditions already in place and the expectations of a continued difficult trading environment, the group will come under further significant pressure this autumn and into the winter,” it added.
Discover Leisure said it has continued to benefit from its existing lending facilities, but it recognizes that it needs to secure additional finance. It is actively involved in pursuing a number of opportunities to secure the ongoing trade of the business.
Discover Leisure, which underwent a major restructuring in 2009 following the rapid decline in demand for leisure vehicles following the global financial crisis in 2008, now has five branches employing 250 people across the north of England.