Aviemore resort losses nearly £59m when administrators were called in

Debts to local suppliers will be paid off under deal agreed by new operator macdonald hotels

By Jonny Muir

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Aviemore Highland Resort was nearly £59million in the red when the complex went into administration last month, it emerged yesterday.

A report issued by Companies House from administrator Pricewaterhouse-Coopers (PwC) has revealed the full extent of the resort’s losses, with the Bank of Scotland, which is owed £46million, being the biggest creditor.

Highlands and Islands Enterprise had £2.4million of shares in the venture, while HM Revenue and Customs is due £2million.

The prospects of a significant return for any of these creditors does not look bright, but hundreds of suppliers owed a total of £1million are to be paid by Macdonald Hotels, the new operator of the resort.

Alex Pagett, a non-executive director of the resort, said last night: “We agreed as part of the administration process that all outstanding suppliers would be honoured.

“The priority was to secure the jobs and secure the future of the resort. The task now is to focus on moving the business forward.

“It’s business as usual at the resort. Macdonald Hotels is committed to starting a refurbishment programme on the existing portfolio with immediate effect.”

Macdonald Hotels’ parent company is 50% owned by Bank of Scotland.

Last month, the new operator, Macdonald Aviemore Highland Resort Ltd, pledged to refurbish the resort’s four hotels and said formal planning consent for a raft of new developments – which are seen as crucial to securing its long-term future – is expected shortly.

The complex went into administration last month but was acquired minutes later, saving 300 jobs, by Macdonald Hotels after an agreement was brokered with PwC.

The resort had been owned by a consortium made up of Bank of Scotland, Macdonald Hotels and Tulloch Homes but it encountered financial difficulties due to the recession and the failure to secure planning permission for key extensions.

It was losing £10,000 a day at one stage.

PwC Scotland’s head of business recovery Bruce Cartwright said the resort’s former operator, Aviemore Highland Resort Ltd, had insufficient assets to pay hundreds of suppliers, including Cairngorm Mountain, Colin Baxter Photography, Corrie Group, Destination Loch Ness, George Campbell and Sons, Highland Council, Scotbeef, Spey Valley Hire Centre and VisitScotland.

“Many people are pleased that the business is being restructured because they will continue as suppliers,” he said.

HIE invested £5.4million in buildings at the resort, in addition to £2.4million in preference shares. An HIE spokeswoman said: “The investment in these high-quality facilities remains and has allowed the new operator to continue to maximise their use for the local economy now and for many years to come. HIE will be lodging a claim with the administrator.”

Highland MP Danny Alexander said: “The continued success of Aviemore Highland Resort is important to the whole area and obviously maintaining good relations with suppliers is vital, so I’m delighted that Macdonald Hotels will honour any debts owed to local suppliers.”