Administrators axe 124 jobs at struggling Preston caravan manufacturer
Administrators have announced 124 redundancies at a Preston caravan manufacturer after failing to find a buyer.
Partners David Acland and Lila Thomas, from specialist business advisory firm FRP Advisory, were appointed joint administrators of Lunar Caravans on July 16, and have been marketing the business for sale since then.
They laid off 140 of the 196-total workforce after all production work on carvans had ceased shortly before the appointment of the joint administrators.
They said the company had faced severe cashflow issues in recent months following a period of challenging trading conditions resulting in the administration appointment.
Efforts were being made to find a buyer for the business and its assets before the firm’s planned Summer shutdown, but this has not been possible, leading to the redundancies today.
Joint administrator David Acland said: “Despite a significant amount of interest from UK and international buyers, we are yet to receive an acceptable offer for the business as a going concern.
“We are now approaching the planned Summer shut down and without funds to continue we have sadly had to make 124 redundancies.
“Our priority is now to ensure those affected have the support they need during this difficult time and we will be working closely with (trade union) Unite and South Ribble Borough Council to do this.”
He added: “Our priority was to find a buyer for the business as a going concern before the planned Summer shut down and whilst this has not happened, we are still in discussions with interested parties and remain hopeful of a positive outcome.”
Lunar Caravans designs and manufactures lightweight touring caravans from its production facility in Lostock Hall.
Speaking on the day of their appointment earlier this month, Dave Acland said: “Lunar Caravans is a renowned manufacturer of lightweight touring caravans and over the past 50 years has established a reputation for innovative designs and cost-effective models that have become hugely sought after among UK holidaymakers, enjoying an enviable market position and strong brand.
“The UK staycation market remains strong and our focus is now on seeking a buyer for the business and its assets.
“We would encourage any interested parties to contact the joint administrators as soon as possible.”