UK Holiday Park Operator Enters Administration Impacting 11 Resorts Across the Country

A significant development in the UK holiday park sector has emerged, as Cove UK, one of the nation’s largest caravan park operators, has entered administration. This situation affects 11 resorts nationwide, raising concerns among holidaymakers and park owners alike.

Impact on UK Resorts

Cove UK operates several popular holiday parks, including the Solway Holiday Park in Cumbria, which features a capacity of 1,600 pitches. Also affected is the Gwel an Mor Resort located in Cornwall.

• Consolidation of Argyll Holidays: Cove UK acquired Argyll Holidays for £100 million in 2022.
• Resorts affected under Argyll Holidays include:
  • Drimsynie Holiday Village
  • Hunters Quay Holiday Village
  • Loch Awe Holiday Park
  • Loch Eck Caravan Park
  • Loch Eck Country Lodges
  • Loch Lomond Holiday Park
  • St Catherines Caravan Park
  • Stratheck Holiday Park
• Springwood Holiday Park, though not part of Argyll Holidays, is also impacted.

Administration Details

The Rio organisation Alvarez & Marsal Europe has been appointed as the administrator for Cove Communities Holiday Park UK Holdco Limited and its subsidiaries. This includes:

• Cove Communities Venture 2 Gwel an Mor OpCo Ltd
• Cove Communities Venture 2 Solway OpCo Ltd
• Cove Communities Venture 2 Springwood OpCo Ltd

Joint administrators Adam Paxton, Rob Croxen, and Ben Cairns have been tasked with overseeing the operations during this transition.

Holidaymakers and Park Operations

Despite the administration, holidaymakers are currently unaffected, as the parks are closed for the off-season. Paxton has reassured stakeholders to expect minimal disruption throughout this period.

• The administration aims to maintain stable operations while exploring sale options.
• All payments for site fees should no longer be directed to previous bank accounts.

Customer Response

The announcement has left many caravan owners disheartened. Some have described it as the “end of an era,” while others expressed distress about their investments.

Context of the UK Holiday Park Industry

Holiday parks have long been a cherished part of British leisure culture, with origins tracing back to 1894 when the first park opened on the Isle of Man. However, many of these locations have faced challenges, including declines in patronage and maintenance issues amid the rise of affordable overseas holidays.

Recent closures in the sector reflect broader industry trends. In August, the Baltic Wharf Caravan and Motorhome Club site in Bristol, which had been operational for 47 years, ceased operations. Similarly, in April, the Pontins Pakefield Holiday Village, with an 80-year legacy, closed its doors.

As developments continue, the focus remains on securing the future of the affected holiday parks while ensuring that holidaymakers and residents are informed and supported during this transition.