Two luxurious holiday parks in the South West have been acquired in a £16m deal following the collapse of the company that operated them, leaving significant debts. The entire staff at Hornbeam Country Park in Dunkeswell and Willow Bay Country Park in Whitstone, near Holsworthy, have been transferred to the new owner. However, the takeover has resulted in creditors suffering losses of £12m.
Exclusive Luxury Lodges Ltd, the company that ran the holiday parks, entered administration, leaving its employees uncertain about their future. Recent plans from PKF Littlejohn Advisory Ltd reveal that all the parks, as well as some land and additional assets, have been sold to ELL Holdco Ltd in a pre-pack agreement.
Despite being seen as the best solution, this arrangement will likely leave creditors short by around £11.825m. Most of the shortfall will be shouldered by Luxembourg-based lender RS Lender IV SARL, which is set to receive just 60.48p for every pound owed. HM Revenue and Customs is expected to lose over £1 million in unpaid taxes, while unsecured creditors, including some Devon businesses, are unlikely to recover the £312,288 they are owed.
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The purchase includes Hornbeam Country Park, valued at £4.4 million, and Willow Bay, valued at £2.7 million. All lodge owners have been notified about the pre-pack arrangement. Before its collapse, Exclusive Luxury Lodges had borrowed £26.453m from RS Lender IV SARL in 2021. The lender asked for repayment of the entire loan when Exclusive Luxury Lodges defaulted on the terms of the agreement, leading to the company’s insolvency and the appointment of administrators.
While the administrators didn’t think the business could be rescued as a going concern, they continued to trade the holiday parks and ultimately decided on a pre-pack sale to ELL Holdco Ltd for £16.25m. Independent evaluator Compass Evaluator Reports Ltd stated that the purchaser intends to make operational changes, including appointing an experienced operator to manage operations going forward.
In addition to Hornbeam and Willow Bay, Aspen Country Park was valued at £3.250m and Cherry Bird Country Park at £1.7m, with the sale also including land in Gloucester and 100 lodges. As the administration continues, administrators are exploring other avenues to collect cash, with their proposals requiring approval from the secured creditor.
Exclusive Luxury Lodges' failure to submit accounts due at Companies House in December 2023 contributed to the company’s financial troubles. Its most recent accounts, for 2021, showed a decrease in operating profit and turnover from the previous year.