Discover Leisure . In Administration

[Parksy]

:54
Discover Leisure PLC - Appointment of Administrators
RNS

RNS Number : 2548Q
Discover Leisure PLC
14 October 2011



14 October 2011

DISCOVER LEISURE PLC
('Discover Leisure' or 'the Company')
Appointment of Administrators
Following this morning's announcement regarding the suspension of trading of the Company's ordinary shares, the board is now providing a further update.
As previously announced, the Company has faced challenging trading conditions and the board has been actively pursuing a number of options to raise additional capital. These options have included selling certain assets of the Company and securing alternative equity and debt financing from trade and financial parties. Prior to the Company's suspension of trading in its shares, negotiations were on-going with a number of parties and it was hopeful that sufficient additional funding or a business disposal would be completed. It has now, however, become clear that neither solution can be achieved within the foreseeable future. As a result, and, following discussions with the Company's lenders, unfortunately it also became clear that the Company was unable to continue trading as a going concern. Consequently, the Board has appointed Mark Granville Firman and Paul Andrew Flint of KPMG as administrators to the Company.

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.

For further information please contact:

Discover Leisure plc 01430 803 385
David Morrow, Chairman
Trevor Parker, Chief Executive
Neil Harwood, Finance Director

Panmure Gordon (UK) Limited 020 7459 3600
Andrew Godber/Adam Pollock

Cubitt Consulting 020 7367 5100
Chris Lane / Alice Coubrough

Background Note
Discover Leisure is a leading specialist caravan, motor home and leisure industry retailer which floated on AIM in May 2005. The Group's strategy is to lead the consolidation and modernisation of caravan and motorhome retailing in the UK, which also creates opportunities to sell outdoor leisure products from its branches and over the internet.
In August 2005, Discover Leisure acquired the company which owned Harringtons Caravans. On 8 September 2006, it acquired Leisure World, which owned four caravan retail outlets, for GBP5.75 million, followed on 3 July 2007 by the acquisition of Barrons Holdings, a leading retailer of caravans, motor homes and associated accessories with seven retail branches across the country, for GBP20.0 million. On the same date, Mendip Caravan Centre, which operates three retail branches, was purchased for a total consideration of GBP2.2 million. On 12 March, 2008, Discover Leisure announced the acquisition of the motor homes dealership based on a five acre site in Cannock in Staffordshire from the Brownhills Group for GBP2.66 million.
With a rapid decline in the demand for leisure vehicles following the global financial crisis in 2008, the Group undertook a major restructuring of the business in 2009 including the proposal and subsequent approval of a Company Voluntary Arrangement (CVA), refinancing of its banking facilities and closure of eleven of its trading sites.
The Group now has 5 branches employing 250 people across the north of England. The branches are located at: Birtley (Tyneside), Delamere (Cheshire), Chorley (Lancashire), Darlington (County Durham) and York (Yorkshire). Its head office is situated in East Yorkshire.
The board consists of David Morrow, Chairman; Trevor Parker, Chief Executive; and Neil Harwood, Finance Director. The Non Executive Directors are Ian Currie and James Hayward.

This information is provided by RNS
The company news service from the London Stock Exchange
END

MSCEAKELFSAFFFF

 

[Heethers]

The web site was still open Friday morning nearly bought 2 Raskelf Duvalays, good job l didn't, would have had lot of trouble retrieving 200 quid. But very sorry for those who's jobs have gone. Last week they were ringing us about servicing our AceFirestar, told them 18months ago we sold it, l think they were trawling through old customers to see if they could drum up more buisness.

 

[mat1]

Went up to Chorley yesterday.
What a sad sight.

£millions of equipment sat there all locked up.
The shop was locked, with notices on the windows advising of the current situation.
Just two cars on the car park, mine and a rather ill mannered and obnoxious "security guards."
Guess he has had enough of people asking questions.

The staff at Campbells were not overly excited at the prospect of additional business though !!
Guess they may be a little concerned for there own now ???

Mat

 

[Trevor_374569540]

Well well well, I did post on this forum in 2008 when I as an employee of Discover was made redundent from their Orpington Branch (The Old and Great Orpington Caravans) and I was ridiculed by some members who stated that Discover were the best thing since Heinz put beans in cans. They took over Orpington caravans in September 2006 and it soon became obvious that it was not going to work, in May 2008 they told us all to sling our hooks. They did not have a clue. There had been a caravan retailership at Orpington for 55 years, it took this bunch of cowboys from Hull just under two years to totally **** it all up. I have the greatest amount of sympathy with the staff because they will be treated like nothing they have seen before.
From my point of view it could not have happened to a bigger bunch of rip off merchants

 

[Whittakerr]

I posted on Tuesday that they were in a bit of trouble but the post was deemed in breach of forum rules and removed.
Hope no one has paid any big deposits in the last few weeks or days.

 

[Damian]

I posted the information about Discover purely as a heads up for those who may be affected by having bought, or in the process of buying from them so that they can start to make enquiries as to what happens as far as they are concerned.

I did NOT post to enable a slag off topic on how bad Discover management are or were and if the topic encourages any more such replies it will be removed.

This is NOT the time or place for derogatory posts, many people are at real risk of becoming one of the unemployed statistics in the next few days.

 

[Surfer]

Discovery are in administration and not receivership. There is a big difference between the two. Basically means that Discovery should continue to trade, but under the administrators while a buyer is found. The staff should be paid their wages up to about £360 a week plus redundancy pay through a government scheme. The administrators sort this bit out and notify the relevant govt department. I think redundancy pay is for those that have been there for 2 years or more and is a week for each year.

 

[Trevor_374569540]

Mr Moderator, I was not and did not tend to as you so politely put it in capitals tend to slag anyone off, but as a reply to your last paragraph I am one of those statistics as you so eloquently put it. What has happened to this country when you are not aloud to have an opinion.

 

[PhilFraeHowMill]

Just a couple of thoughts on this, I was under the impression that within reason, over the last few years, dealers had never had it so good. If Discover are in administration as opposed to receivership, why is Chorley all locked up and security guards in place, this sound very similar to when they closed the Carlisle branch down a few years back, managers turned up with security guards and ordered all the staff off site. I`m very sorry for all the staff involved, hopefully some new forward thinking individuals will see an opportunity to take some of these branches on, and save some of these experienced jobs. Good luck to all involved.

 

[Parksy]

Mr Moderator, I was not and did not tend to as you so politely put it in capitals tend to slag anyone off, but as a reply to your last paragraph I am one of those statistics as you so eloquently put it. What has happened to this country when you are not aloud to have an opinion.

Hi Trevor
You have been allowed to air your opinion on the forum as your earlier post has shown.
Discover Leisure is reportedly being run by administrators at the present time, and forum moderators must take care to ensure that what could be considered to be defamatory or prejudicial material appearing on the message boards does not prejudice the chances of the administrators who are attempting to salvage something from the failed business.
Moderators have no wish to suppress genuinely held opinion and comment, and sympathise with your predicament, but at the same time the rules of the forum as shown in forum etiquette still apply.
Rule 4 asks that complaints about named companies be taken up with those concerned rather than be posted as forum comments.
Thank you for your understanding and co-operation in this matter.

 

[DerekBrad]

I'm no finance expert, but I was absolutely amazed to read the timetable and cost of the acquisitions of companies by Discover's management. In thirty months it seems that they paid out £30.6 million !! Seems quite reckless to me, but as I said, I'm not the expert.
My sympathy as usual goes to the ordinary working men and women who will be the ones to suffer. Let's hope that some sort of rescue package can be arranged to save some of it.
Derek

 

[Dustydog]

Just goes to show big isn't always beautiful,

The forthcoming PCv Dealer of the Year will of course be one of the smaller less greedy merchants . I note most of the short listed do have a good customer following.
Shame for anyone who purchased from Discover. Could be difficult.

 

[Martin24]

I've never used a big company I just hope the customers out there (if no buyers are found) can find a good independent workshop to carry out any warranty work needed. Luckily my dealer and manufacturer are happy with me using my independent anyway.

 

[PhilFraeHowMill]

BBC Look North has just broadcast an article about a couple who had their van in the Darlington branch for service, they don`t owe anything on it, it is their van. However, it is now locked behind palasade fencing topped with razor wire, and according to them they were wanting to go away shortly, a very uncertain future for them. I wonder how they stand??

 

[Parksy]

The couple and anyone similarly affected should contact the administrators at KPMG on their dedicated helpline

Tel: 0845 617 1490

 

[NigelDonnelly]

Dear All,

Very sad news for customers and employees of DISL and out sympathies are with anyone who has been affected. At the NEC Show, the PC stand was opposite Discover Leisure's stand and we watched as it was closed up on friday morning. Horrible for the sales folk who weren't allowed to work as they are pretty much the victims of circumstance and judgement calls elsewhere in the business.

In response to the point about deposits, we've been told that DISL sold 13 caravans at the show and took nominal deposits to secure the caravans of £1. Manufacturers who worked with Discover have been in touch with those who paid deposits to try and secure other dealers who can match the show deals.

Anyone who has a caravan at a Discover depot needs to contact KPMG and once ownership is established, their vehicles will be released. Horrible and inconvenient in the meantime, but hopefully with a good result.

Incidentally, DISL customers with outstanding warranty work should contact the manufacturer of the caravan who will advise on getting warranty work transferred to another dealer in their network.

 

[Dustydog]

Discover Leisure: Bailey clarifies customer position
See front news page. Well done Bailey who have set up alternative Dealers to continue any Warranty work etc that would have been done by Discover.. Hopefully anyone who has a caravan at a Discover premises can retrieve it easily.
I hope the other main stream manufacturers do the same as Bailey.

 

[ProfJohnL]

Dusty,

You beat me to it. Bailey have been proactive in making their announcment - although strictly it wasn't necessary as it is reiterating their standard practice in relation to the manufacturer's guarantee.

But never-the-less it helps to let cusomers know so well done.

 

[Dustydog]

Dusty,

You beat me to it. Bailey have been proactive in making their announcment - although strictly it wasn't necessary as it is reiterating their standard practice in relation to the manufacturer's guarantee.

But never-the-less it helps to let cusomers know so well done.

Hi John
I see Elddis have done the same too. Well done.
I haven't heard about any others like Swift etc?

 

[Damian]

http://www.discover.co.uk/
See the link above, Discover have a massive sale of all stock starting soon.

 

[Surfer]

I think the big worry woudl be warranty as most caravans do nto have a PDI before they leave the factory and tend to have lots of problems within the first 6 mon ths.

 

[RogerL]

I think the big worry woudl be warranty as most caravans do nto have a PDI before they leave the factory and tend to have lots of problems within the first 6 mon ths.

The main part of the sale is the stock of accessories, being held at Discover branches on 12/13th November.
Most of the caravans/motorhomes have already been disposed of - some new, undelivered ones owned by the finance house have gone to other franchised dealers and will presumably get full manufacturers' warranty - the bulk went to The Caravan Company who are giving their own 12 months warranty but the manufacturers' warranty can be transferred for brands which permit transfers - the remaining 58 caravans/motorhomes are available subject to negotiation with the Administrators, probably "sold-as-seen" and priced accordingly.
Personally, I'd wonder what's wrong with the remaining 58 for the trade not to have already bought them!

 

[Surfer]

I think the big worry woudl be warranty as most caravans do nto have a PDI before they leave the factory and tend to have lots of problems within the first 6 mon ths.

The main part of the sale is the stock of accessories, being held at Discover branches on 12/13th November.
Most of the caravans/motorhomes have already been disposed of - some new, undelivered ones owned by the finance house have gone to other franchised dealers and will presumably get full manufacturers' warranty - the bulk went to The Caravan Company who are giving their own 12 months warranty but the manufacturers' warranty can be transferred for brands which permit transfers - the remaining 58 caravans/motorhomes are available subject to negotiation with the Administrators, probably "sold-as-seen" and priced accordingly.
Personally, I'd wonder what's wrong with the remaining 58 for the trade not to have already bought them!

Probably half stripped to repair other units. I have on occasion seen this happen when a company gets into financial difficulty and does not have the cash to to buy spares from the manufacturer. They remove the item from the new unit, fit it into the customer's unit and then charge a small fortune.

 

[Dustydog]

I read on another forum this morning that some customers had left their caravans with Discover as a PX on a new one. Surely the Administrators should return that caravan?
I wonder in Law who truly has Legal Title?

I feel very sory for these people who may stand to lose thousands of their hard earned money through no fault of their own. Maybe the Law needs changing.

 

[RogerL]

The Administrators will go exactly by the law - they're not allowed to use discretion as they're required by law to obtain the maximum amount of money for the creditors.
In the case of part-exchange, I've no idea when legal title passes to the dealer - in the particular circumstance where it's taken in early I'd expect it's value to be fixed at that point so it MAY be that the dealer has legal title from that point - if so it's tragic for anyone involved.