The administrators who were called in by Discover Leisure have revealed this week that all unsecured creditors who loaned money to the stricken motorhome and caravan retailer are to miss out on millions.
An administrator report shows that the company from Yorkshire owes millions of pounds to National Westminster Bank and Black Horse. Former workers of the company are also trying to claim around a quarter of a million pounds after the company went bust two months ago leaving over two-hundred people unemployed.
KPMG is one of the Big Four auditors and their report shows that Discover has debt with National Westminster to the tune of £10 million, while Black Horse, the lender which financed Discovers motor vehicle stock, is owed around £7 million. Administrators Paul Flint and Mark Firmin have claimed that repayments will be dependent upon what money is raised from the freehold properties and land. The administrators themselves sold off the last £1.5 million of Discover Leisure stock in a fire sale in November and are still owed over £250,000. The fire sale proved to be good news for motorhome enthusiasts, who found themselves buying motor caravan insurance for vehicles that were sold at a bargain price.
They were the lucky ones as customers who paid deposits to Discover Leisure using anything other than a credit card are very unlikely to get their money back. Many customers had paid deposits, paid for spare parts and some had even paid for their pride and joy to be held in storage over the winter. Discover was trading up to the evening before it went into administration and this has angered customers who feel they deserved to have been told of the risk.