Holiday park firm with Scottish sites owes £244m in debt

Summarised from 2 outlets · Updated 1 Nov, 15:05 · Archive

A UK holiday park company operating Scottish sites has entered administration owing £244 million.

Cove Communities Holiday Park UK HoldCo Limited entered administration in November owing £244 million in total debt. The collapse was driven by high interest rates, consumer spending contraction and rising operational costs, according to joint administrator Adam Paxton. The company operates eight holiday parks across Argyll with nearly 197 staff members and a site in the Scottish Borders with 20 employees, as well as facilities in Cumbria and Cornwall.

While the sites have continued to operate, administrators Alvarez & Marsal are seeking a buyer for the business. Property agents Colliers have been appointed to market the trading portfolio across Scotland and England. Scottish sites being marketed include Drimsynie Holiday, Hunters Quay Holiday Village, Loch Awe Holiday Park, Loch Eck Caravan Park, Loch Eck Country Lodges, Loch Lomond, St Catherine's Caravan Park and Stratheck Holiday Park.

Of the £244 million debt, a secured lender is owed £70 million whilst unsecured creditors are owed £174 million, mainly consisting of loan notes and inter-company debt. It remains uncertain whether these creditors will receive distributions, which will depend on the value achieved from the sale.

Holiday park firm with Scottish sites owes £244m in debt — Image: The National

Comments (0)

How it is being reported

Holiday park firm with Scottish sites fell into administration owing £244 millionA UK holiday park company with sites across Scotland has collapsed into administration owing £244 million ...The National · 1 Nov, 14:19
Holiday park firm with Scottish sites in administration 'owes £244m in debt'Sites in Scotland are up for sale.Daily Record · 31 Oct, 13:23

In this story: Cove Communities Holiday Park UK HoldCo Limited · Alvarez & Marsal · Colliers · Argyll · Scottish Borders · Loch Lomond

This summary was written by AI from the headlines and standfirsts above, and states as fact only what at least two outlets report. How we use AI · Report a problem · Corrections log