Slump in caravan sales leads to collapse

Another 19 members of staff at Hull-based Normandy Holiday Homes were sent home yesterday, following 19 redundancies last week, leaving a skeleton staff of six.

The job losses come barely a week after another major manufacturer, Willerby Holiday Homes, announced it was shedding nearly a quarter of its staff.

The firm, based in Bontoft Avenue, in the city, which was bought by its directors in a management buyout nine years ago, has seen export orders fall, because of the Eurozone crisis, as well as a disruption to its supply chain since 2011, that has resulted in a 40 per cent drop in sales and “irreversible” financial pressures.

Joint administrator Andrew Mackenzie said slow payment from retailers unable to sell units this year because of the “dreadful” summer, was also a major factor.

He said: “For the first six months there has been a 30 per cent downturn in demand for single unit lodges, from what I have seen. They exported a good chunk of vans to Europe and what’s happened in Europe, the nervousness and lack of confidence has stopped people from spending money. The lack of exports really did kill it – the weather has not helped.”

He remained confident they could secure a trade buyer for the business, Normandy Caravans Ltd, which trades as Normanby Holiday Homes, or its assets.

Louise Wood, from the National Caravan Council said consumers were unwilling to sign up for “big-ticket” items, like caravans, because of concerns about the economy.

The Government recently backtracked on imposing a 20 per cent controversial “caravan” tax after coming under intense pressure. Five-per-cent VAT will be liable on static caravan sales, from April. North Hull MP Diana Johnson said she was stunned by the latest “dire” news.