UK holiday park group crashes into administration – 158 jobs created to save business | UK | News
Argyll Holidays’ parks remain open despite the company going into administration. (Image: Getty)
A holiday park operator with debts of more than £100 million has increased its staff by 158 workers as it continues its efforts to secure the future of its parks.
New documents reveal administrators overseeing Argyll Holidays have increased the workforce at the company’s sites in Scotland from 97 employees to 255 employees to ensure operations continue while a buyer is sought. The business, operated by Cove Communities Venture 2 Argyle OpCo Limited, went into administration in November after struggling with rising debts, rising costs and weakening consumer demand.
Drimsynie Estate Holiday Village is among the sites that continue to trade. (Image: Getty)
Despite the financial collapse, the group’s eight holiday parks in Scotland remain open and administrators have confirmed plans to launch a sales process in the coming months.
Parks that continue to operate include the flagship Drimsynie Estate Holiday Village, Hunters Quay Holiday Village in Dunoon, Loch Awe Holiday Park and Loch Eck Caravan Park.
Alvarez & Marsal joint managers Adam Paxton, Rob Croxen and Ben Cairns said the staff increase was necessary to support continued trading while the business remained in administration.
“At the date of appointment there were 97 employees and this has been increased to 255 employees to ensure we have sufficient staff to support ongoing trading,” they said.
Administrators warned that preparations for the sale of the business were ongoing but that the timing of any deal remained uncertain.
The latest report also reveals for the first time the extent of the company’s financial difficulties.
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Total debts exceed £103 million, including approximately £40 million owed to unsecured creditors. The secured lender is owed around £69.8 million.
Argyll Holidays was founded in 1967 and has grown to become one of Scotland’s best-known holiday park operators. In 2022, the business was acquired by Cove Communities in a deal reportedly worth around £100 million.
At the time, Argyll Holidays director Keith Campbell described Cove as the “ideal custodian” for the family business and praised its commitment to investing in tourism destinations.
Executives said a number of factors contributed to the collapse, including high interest rates, falling consumer spending, rising business costs and wider pressures affecting the holiday park industry.
Additional companies within the wider group have also gone into administration, including sites in the Scottish Borders, Cornwall and Cumbria.
But for now the Scottish parks are continuing to welcome guests as administrators work to find a buyer and secure the future of the business.
