Cairngorm Mountain Limited, the company that operates the Cairngorm Mountain Funicular Railway and associated visitor attractions, has been placed in administration.
Joint administrators, Blair Milne and Derek Forsyth, partners with Campbell Dallas, will continue to trade the business whilst progressing discussions with a potential purchaser for a sale of the business and assets as a going concern. There are no immediate plans to make any redundancies.
Opened on Christmas Eve in 2001 following an investment of around £20m, the Cairngorm Funicular Railway carries around 300,000 tourists and sports visitors every year. Extending to 2 kilometres in length, it is the highest mountain railway in the United Kingdom. The funicular has been closed since Monday 1st October to allow for a detailed assessment of the structure that supports the tracks. These investigative works remain on-going.
The administration has been caused by unsustainable cash flow problems. Cairngorm Mountain Limited employs around 70 staff and had a turnover of £3.5m to 31st December 2017.
Commenting, Blair Milne, Business Recovery Partner with Campbell Dallas 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 Cairngorm Railway and Mountain Snowsports centre are owned by Highlands and Islands Enterprise (HIE) and operated on its behalf under a lease by Cairngorm Mountain Limited.
For more information contact:
0141 886 6644
This information should not be regarded as financial advice. This is based on our understanding in November 2018. Laws and tax rules may change in the future.
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