Firms pay price for lodge maker’s £2.3m debts
THE scale of debts left by a luxury holiday lodge maker to nearly 200 businesses has been revealed.
Cambrian Park and Leisure Homes Limited went into administration after suffering losses and cash-flow pressures following a move to a purpose-built manufacturing unit in Porthmadog.
Several jobs were lost but more than 100 were saved when the company was sold to Cambrian and Sovereign Holding Group in March, and the new management says it has successfully returned the operation to profitability.
But an Outcome Statement by administrator FRP Advisory shows the trail of debt left by the business under the previous management, with Helen Scott and Andrew Dodwell listed as directors when the company went into administration.
It shows a list of 193 unsecured creditors, including dozens of local sub-contractors and suppliers.
The total shortfall in the money owed to unsecured creditors was £2.36m, while the report said there was a shortfall of £2.7m to Fixed Charge Holders, including main investor YFM.
Mrs Scott, who was focused on sales at Cambrian, told our sister paper the Daily Post she had raised concerns about the way the company was being run.
She added that herself and Mr Dodwell, who only joined the company at the end of 2016, were not to blame for the failings at the firm and that she herself had lost money.
The debts left have caused financial pain to businesses across North Wales – a source said the actions had left a firm in Gwynedd battling bankruptcy.
Dylan Jones, of Park Farm, Maenan, Conwy Valley, whose company made chassis for the mobile homes, said it had been a “double blow” for his business.
The company is still owed more than £40,000 and remains in legal dispute with the administrators over goods he says are on the site.
Talking about the impact on the firm, he said: “We lost the work when they went into administration and have not got it back, and we have lost thousands of pounds that was owed to us.
“This has impacted so many sub-contractors, electricians, plumbers, across North Wales, it is not right. We had to lose two staff members, it is a big impact for a small business like ours.”
Among the firms in North Wales on the list of creditors are Huws Gray builders’ merchants, Glanaber Transport, Gwynedd Builders, Gwynedd Forklift, and Letterbox Recruiting.
A former owner of Cambrian, Richard Watson, who sold the firm when it was thriving in 2014, said mistakes had been made since he had left although he said Mrs Scott and Mr Dodwell were not to blame for the issues.
He said he was called in at the last minute to try to save the firm from administration but it was too late.
Cambrian and Sovereign Holding Group, which paid £429,000 for the business, have made it clear the debt issues related to the previous owners.
Vincent McCullagh, managing director of the new company, said: “As you can imagine we’ve been very busy since 17th March in reshaping and re-energising the company and getting it back to standing on its own two feet.
“We’ve found great value and assistance in the highly skilled, caring workforce who strive to do a great job.
“There are some absolute gems in mid- dle management and other office staff, who have really supported us and helped us to move forward.
“Suppliers have been great too – they realise that the demise of the former Cambrian was nothing to do with us and are really pleased that there are knowledgeable, experienced industry people at the helm.”
Administrator FRP Advisory did not want to comment, nor did YFM.