14 October 2011
DISCOVER LEISURE PLC
('Discover Leisure' or 'the Company')
Appointment of Administrators
Following this morning's announcement regarding the suspension of trading of the Company's ordinary shares, the board is now providing a further update.
As previously announced, the Company has faced challenging trading conditions and the board has been actively pursuing a number of options to raise additional capital. These options have included selling certain assets of the Company and securing alternative equity and debt financing from trade and financial parties. 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. Consequently, the Board has appointed Mark Granville Firman and Paul Andrew Flint of KPMG as administrators to the Company.
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.
For further information please contact:
Discover Leisure plc 01430 803 385
David Morrow, Chairman
Trevor Parker, Chief Executive
Neil Harwood, Finance Director
Panmure Gordon (UK) Limited 020 7459 3600
Andrew Godber/Adam Pollock
Cubitt Consulting 020 7367 5100
Chris Lane / Alice Coubrough
Background Note
Discover Leisure is a leading specialist caravan, motor home and leisure industry retailer which floated on AIM in May 2005. The Group's strategy is to lead the consolidation and modernisation of caravan and motorhome retailing in the UK, which also creates opportunities to sell outdoor leisure products from its branches and over the internet.
In August 2005, Discover Leisure acquired the company which owned Harringtons Caravans. On 8 September 2006, it acquired Leisure World, which owned four caravan retail outlets, for GBP5.75 million, followed on 3 July 2007 by the acquisition of Barrons Holdings, a leading retailer of caravans, motor homes and associated accessories with seven retail branches across the country, for GBP20.0 million. On the same date, Mendip Caravan Centre, which operates three retail branches, was purchased for a total consideration of GBP2.2 million. On 12 March, 2008, Discover Leisure announced the acquisition of the motor homes dealership based on a five acre site in Cannock in Staffordshire from the Brownhills Group for GBP2.66 million.
With a rapid decline in the demand for leisure vehicles following the global financial crisis in 2008, the Group undertook a major restructuring of the business in 2009 including the proposal and subsequent approval of a Company Voluntary Arrangement (CVA), refinancing of its banking facilities and closure of eleven of its trading sites.
The Group now has 5 branches employing 250 people across the north of England. The branches are located at: Birtley (Tyneside), Delamere (Cheshire), Chorley (Lancashire), Darlington (County Durham) and York (Yorkshire). Its head office is situated in East Yorkshire.
The board consists of David Morrow, Chairman; Trevor Parker, Chief Executive; and Neil Harwood, Finance Director. The Non Executive Directors are Ian Currie and James Hayward.
