Argyll Holidays entered administration owing more than £103 million to creditors – now it’s hiring 158 staff to keep parks open while a buyer is sought
A major UK holiday park operator that went into administration with debts exceeding £100 million has boosted staffing numbers by 158 as it battles to safeguard the future of its sites.
Fresh documents show that administrators running Argyll Holidays have grown the workforce at the firm’s Scottish locations from 97 to 255 staff members to maintain operations while searching for a buyer.
The company, run by Cove Communities Venture 2 Argyle OpCo Limited, collapsed into administration in November after grappling with escalating debts, soaring costs and declining consumer demand.
Despite the financial meltdown, the group’s eight holiday parks across Scotland remain operational, with administrators confirming intentions to initiate a sale process in the months ahead.
Among the parks still trading are the flagship Drimsynie Estate Holiday Village, Hunters Quay Holiday Village in Dunoon, Loch Awe Holiday Park and Loch Eck Caravan Park.
The operator also has park at Inveruglas on Loch Lomond, featuring a private beach.
Joint administrators Adam Paxton, Rob Croxen and Ben Cairns of Alvarez & Marsal explained the staffing increase was essential to sustain continued trading while the business stays in administration, reports the Express.
“There were 97 employees at the date of appointment, and this was increased to 255 employees to ensure we have sufficient staff to support ongoing trading,” they said.
The administrators said that preparations are progressing for a sale of the enterprise, though they warned that the timeframe for any transaction remains unclear. The latest report also lays bare the true extent of the firm’s financial woes for the first time.
Total debts surpass £103 million, with around £40 million owed to unsecured creditors. The secured lender is owed approximately £69.8 million.
Argyll Holidays was established in 1967 and went on to become one of Scotland’s most recognisable holiday park operators. In 2022, the business was snapped up by Cove Communities in a deal reportedly valued at around £100 million.
At the time, Argyll Holidays director Keith Campbell described Cove as the “ideal custodian” for the family business, praising its commitment to investing in tourism destinations.
Administrators said a number of factors led to the collapse, pointing to high interest rates, declining consumer spending, soaring operating costs and broader pressures gripping the holiday park sector.
Further companies within the wider group, including sites in the Scottish Borders, Cornwall and Cumbria, have also fallen into administration.
For the time being, though, the Scottish parks remain open to guests as administrators push to find a buyer and secure the future of the business.
