240 jobs go as administrators fail to save Discover Leisure

AROUND 240 people have lost their jobs at a Yorkshire-based caravan and motorhome retailer which went into administration after being hit by the slump in consumer spending.
By The Newsroom
Published 18th Oct 2011, 10:53 BST

On Friday, Mark Firmin and Paul Flint of KPMG were appointed joint administrators of Discover Leisure, and its trading subsidiary Signlease

On Monday evening a spokesman for the administrators of Discover Leisure, which is based in North Newbald, East Yorkshire, confirmed that only 20 of the company’s 260 staff have kept their jobs. Last night, a KPMG spokesman said the remaining staff were “working with the administrators” who are trying to rescue some or all of the business.

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On Friday, shares in Discover Leisure were suspended after the caravan retailer admitted it was unlikely to secure vital funds needed to keep it trading.

Speaking on Friday, Mr Firmin, who is KPMG’s Northern head of Restructuring, said: “Discover has faced a difficult market over an extended period of time, with persistently depressed consumer demand for high value discretionary items in particular.”

Discover trades from sites in York, Newbald, Delamere, Chorley, Darlington and Birtley.

The administrators closed the dealerships over the weekend.

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On Friday, the administrators said they were seeking a sale of the business, but had closed it in the short term while they pursued offers

Discover Leisure, which went through a debt restructuring in 2009, recently warned it had been hit by weak consumer sentiment and needed to secure more finance.

The company has been hit by consumers’ reluctance to spend on big ticket items.

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Related topics:East YorkshireKPMG