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 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.”