KPMG Upbeat on Pontin’s Sale in Few Weeks Ahead

Lucas Gilmore, “Big 4″ observer
January 06, 2011 /

Administrators from KPMG have confirmed that 10 serious buyers have shown interest in a bid for the sale of the ailing British holiday camp operator Pontin’s.

Sale of Pontin’s can be expected few weeks from now following bids of 10 buyers to keep and retain the brand of the holiday camp, KPMG said. However, the business advisory firm cautioned the unsecured creditors of Pontin’s that they may not be paid with the £3.6 million owed to them due to insufficient property in the business.

Former operator of Pontin’s Trevor Hemmings has lost more than £4 million after the business failed and fell into administration in November.

Hemmings is the second largest creditor to Pontin’s, next only to Santander, the holiday camp’s lending bank and secured creditor, which is owed £3.5 million.

Since most of the assets of Pontin’s are fixed, secured creditors will receive pay outs based on the sum that the sale of the business may amount to, KPMG said.

There have initially been 62 potential buyers of Pontin’s but the serious bidders were trimmed down to 10, according to reports. One of Pontin’s rival operators, Butlin’s was reported to have shown interest in buying the holiday camp.

Pontin’s still runs normally its five facilities, Brean Sands in Somerset, Camber Sands in Sussex, Pakefield in Suffolk, Prestatyn Sands in Wales and Southport in Merseyside despite being under administration. KPMG said all of the 850 employees of Pontin’s were paid properly, with pension contributions following up.

The administration process met rallying employees, customers, suppliers, and stakeholders of Pontin’s, KPMG administrator Rob Croxen said.

Croxen attributed the interest shown by the 10 serious bidders to the reputation Pontin’s has built throughout the years.

 

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