ADMINISTRATORS have been called in to Kings Coughton-based Broad Lane Leisure after the firm ceased trading with the loss of 34 jobs.
A note on the caravan and motorhome retailer’s website states that it was placed into administration on 9th July and adds: “Please be advised that the company’s premises are currently closed to the public. Attendance is strictly by advanced appointment only.”
The administrators, FRP Advisory, are to sell assets from the company which had been operating since 1971.
Joint administrator Ben Jones said: “Unfortunately, mounting pressures resulted in the business being unable to meet its financial obligations.
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“Regrettably, this meant ceasing to trade and reducing the workforce to a skeleton staff. We are supporting the employees affected to file claims with the Redundancy Payments Services.
“We are now exploring options for the business and would encourage any parties with an interest in acquiring the business’ assets to make contact with us as soon as possible.”
The failure of the firm was put down to a slowing down in the market, despite a bounce back following the lifting of Covid restrictions.
Broad Lane’s accounts to the year 31st January 2023 at Companies House show revenue of £23.8 million, up from £21.5m a year earlier. Operating profit increased was £1.15m.
The financial statement in the accounts notes that while trading over the summer of 2022 had been strong, there had been a slow down across the sector during last summer which put “pressure on profitability and cash flow”.
It added: “In preparation for the 2024 season, the directors have implemented significant cost reductions and implemented much tighter budgetary control, reducing all non-essential expenditure. These changes have enabled the company to produce a costed plan which includes a solid sales forecast and budgeted expenditure. This plan shows that the company will be able to operate within its bank facilities for the foreseeable future.”