Railway operator enters administration

Sat, 01 Dec 2018 | ADMINISTRATION



Following cash problems due to an extended closure, CairnGorm Mountain Funicular Railway has gone into administration.

The operator of the railway and associated visitor attractions is based in the Cairngorms near Aviemore and has been owned by the public agency Highlands and Islands Enterprise (HIE) since 2008. The company has been shut for almost two months due to an investigation concerning the structure supporting the tracks. Since the closure, specialist engineers have been busy conducting a detailed structural assessment.

Chief executive of HIE, Charlotte Wright, said: "Our first priority is staff members and their families, as well as other local people who will be affected by this decision.

"Clearly, this is not the outcome that anyone wanted when CML became the operator. However, with local support, we are confident that the situation can be turned around and we will see Cairngorm flourish again as a fantastic asset for this area, its economy and its people."

Partners at Campbell Dallas, Blair Milne and Derek Forsyth, have been appointed as joint administrators. The business will continue to trade until a buyer is found. Discussions are currently underway with a potential purchaser.

Milne said: “Due to the extended closure of the Funicular Railway at Cairngorm Mountain, for safety reasons, the business has become unsustainably loss-making. The directors of the business had been in discussions to try to find suitable solutions, including a managed transfer of the business to another party, however those negotiations did not progress. Under mounting cash flow and creditor pressures the Directors were left with no alternative other than to place the business into administration. The joint administrators will be seeking to achieve a sale of the remaining business on a going concern basis as early as possible.”

The railway operator first opened on Christmas Eve in 2001 and currently carries around nearly 300,000 tourists and sports visitors every year.

For all our administrations listings, click here. For more news stories about administrations click here.


Share this article



Latest Businesses for Sale

Estate Maintenance & Cleaning Services
South East, UK

Independent Provider. Offers a comprehensive range of professional and reliable cleaning and estate maintenance services to clients throughout the South East. Works closely with its clients, undertaking all aspects of estate maintenance and commercia...

Asking Price: Offers Invited
Turnover: £440,177

LEASEHOLD


Courier Business
UK Wide

Long-established courier business, which has an excellent reputation for providing a bespoke and rapid response service to its loyal client base. Established 20 years+. Excellent reputation for speedy, flexible and efficient service, 365 days of the...

Asking Price: Offers Invited
Turnover: £600,000

LEASEHOLD


Pest Control Solutions
South East, UK

Offers professional and humane pest control solutions, helping clients throughout the South East maintain pest-free environments. Sources ethical, effective and competitively priced solutions, which meet its clients’ requirements. Offers invited.

Asking Price: Offers Invited
Turnover: £576,745

FREEHOLD



View more businesses for sale

News Search

Latest News

 
10
 
Jul
 

Mobile phone supplier and recycler goes into administration | ADMINISTRATION

Mobile phone refurbishment company Redeem UK has gone into a...

 
09
 
Jul
 

John Lewis to close eight stores as COVID-19 accelerates shift to online | BUSINESS NEWS

Department store chain John Lewis has said that eight of its...

 
09
 
Jul
 

Chancellor cuts VAT on hospitality as part of £30 billion rescue plan | BUSINESS NEWS

Chancellor Rishi Sunak has announced a £30 billion pla...

Free guide: 10 Biggest Buyer Mistakes

Sign up to receive our acquisition alert emails to get your FREE guide

Email


Related News

 
12
 
May
 

Oban-based construction contractor goes into administration | ADMINISTRATION

Scottish construction business Neil McGougan Limited has gon...

Want access to the latest businesses for sale?

Business Sale Report is your complete solution to finding great acquisition opportunities.

Join today to receive:

  • Comprehensive range of businesses for sale
  • Make direct contact with business sellers or their intermediaries
  • Access to all UK administrations, liquidations and winding-up petitions
  • Daily email alerts for the latest businesses for sale & distressed notifications
  • Business Sale Report publication posted to you every month
  • Advertise your acquisition requirements on our "business wanted" section

All this and much more, including the latest M&A news and exclusive resources