Caravan retailer appoints administrators

Caravan retailer Discover Leisure has appointed administrators.

The business, which is based in East Yorkshire and has an outlet in York, announced this morning it had suspended its shares on AIM after funding difficulties.

It had been looking for funding after sales of caravans and motorhomes slowed further in the difficult economic climate.

The company had hoped to sell certain assets and secure alternative equity and debt financing from trade and financial parties.

But in a statement to the stock exchange tonight it said: “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.”

The board has appointed Mark Granville Firman and Paul Andrew Flint of KPMG as administrators.

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.”

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