Glenshee Chairlift Company placed in receivership

The Glenshee Chairlift Company, which runs the Glencoe and Glenshee ski centres and a golf club, has been placed in receivership.

The company, which had been seeking a buyer for the business, blamed poor snow conditions and protracted negotiations with a potential buyer on the decision to call in the receivers.

This week, Joint Receivers Blair Nimmo and Neil Armour, of KPMG Corporate Recovery, were appointed for the company which operates the Glenshee and Glencoe ski resorts, and the Glenisla golf course, near Alyth.

Employing 23 permanent employees, the company's workforce is supplemented by seasonal workers as required.

With facilities for up to 6,000 skiers and boarders per day, the resorts provide skiing over an area of 200 hectares, and includes the UK’s steepest vertical descent, the Fly Paper. The 18-hole Glenisla golf course, which opened in April 1998, includes a 10-bay driving range, car parking and a club house.

Despite a 2000/01 season when the resort boasted 37,000 skier days, due to two mild winters in sucession, Glencoe and Glenshee had racked up losses of £1 million.

The resorts were put up for sale in February 2004, and whilst discussions with a number of interested parties are continuing, the prospective sales had not been concluded quickly enough to enable the company to circumvent a cash poor situation.

In a statement KPMG said: "On being advised this week of further delays in one of the sale negotiations, the directors resolved that they had no alternative but to request the appointment of receivers."

Joint Receiver, Blair Nimmo, head of KPMG Corporate Recovery in Scotland, said: "It is unfortunate that, despite the directors having committed substantial efforts over recent months and involving the use of professional advisers, the company has been unable to complete the sales of any of its business units sufficiently quickly.

“Nonetheless, helped by the protection that is afforded to businesses in difficulty by the receivership process, we are hopeful of being able to complete sales of the businesses as going concerns, preserving employment and economic activity in the local area".

He asked that any party with an interest in acquiring any of the businesses or assets to contact the receivers as "a matter of urgency".

(SP)