Holiday homes firm falls into administration

Mon, 29 Nov 2010

A holiday homes firm based in Hull has been placed into administration following severe cash-flow problems.

Administrators are currently considering a sale for Custom Leisure Homes Limited, which operates under the name Cosalt Leisure Homes, and manufactures hand-built residential and holiday homes at its Stockholm Road base.

Founded 30 years ago, the firm had an annual turnover of around £3 million. The administration, which has led to 43 job losses, comes after a management buyout which the firm underwent last year.

At the time of the MBO, the firm pledged to abandon its caravan building interests and focus on the holiday homes section of the market.

Andrew Mackenzie and Ken Pattullo of Begbies Traynor, the insolvency and recovery company, have been brought in as joint administrators.

Begbies Traynor's Andrew MacKenzie said, "It could be a viable business and has strong orders going forward, but unfortunately it has proved unable to restructure its operations quickly enough to overcome its immediate cash-flow problems.

"We are currently in discussions with some interested parties who recognise the value of the firm's reputation within the sector," he added.

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