Cove Communities Holiday Park UK Holdco Limited, a UK holiday park company with sites across Scotland and England, entered administration last November. The company cited high interest rates, consumer spending contraction, flooding at the Medmerry site and rising costs as factors behind the move.
Administrators appointed and strategy outlined
Adam Paxton and Robert Croxen of Alvarez & Marsal Europe LLP ("A&M") were appointed as Joint Administrators on November 17, 2025. They explained: "This led to an inability to continue to service the loan. As a result of the above, the group requested the secured lender provide additional funding. The secured lender did not agree to the group’s request and exercised its powers under its qualifying floating charge to appoint administrators in order to protect value within the company."
In the latest progress report, the administrators said their strategy during the period has been "to continue to trade the Company's subsidiaries, which are also in administration, to maximise returns to creditors."
Debts and creditor outlook
The administration period has been extended to November 16, 2027, according to Companies House. The administrators said in their most recent update from June that the amount outstanding to the Secured Lender, as at the date of appointment, was approximately £69.8 million. They added that "based on current estimates, it is uncertain whether the Secured Lender will receive a distribution. This is dependent on the value achieved for the sale of business process."
According to the Statement of Affairs, the amount of secondary preferential claims at the date of appointment was £240,009. The administrators also said: "It is uncertain whether the preferential creditors will receive a dividend as this is dependent on the value achieved for the sale of business process." Approximately £174 million is owed to unsecured creditors, primarily comprising inter-company debt and loan notes.
Operational subsidiaries and sale process
Four of the company’s subsidiaries remain operational, including an Argyll-based firm with eight sites and nearly 197 employees, a Scottish Borders company with 20 employees at the date of appointment, a Cumbria location with 46 employees, and a Cornwall site employing 97 people.
Scottish sites up for sale include Drimsynie Holiday, Hunters Quay Holiday Village, Loch Awe Holiday Park, Loch Eck Caravan Park, Loch Eck Country Lodges, Loch Lomond, St Catherine’s Caravan Park and Stratheck Holiday Park. The administrators have appointed property agents Colliers to market the trading portfolio.
