Discover Leisure seeking Creditors Voluntary Agreement

Discussion in 'Motorhome Chat' started by Johns_Cross_Motorhomes, Jun 8, 2009.

  1. Johns_Cross_Motorhomes

    Johns_Cross_Motorhomes Trader - Motorhome & Accessory Sales

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    Have a look at this tucked away on Discover group's web site

    Discover Leisure - a business that's serious about leisure

    [​IMG]CVA Proposal 29.5.09 – Part 3 [​IMG]CVA Proposal 29.5.09 – Part 2[​IMG]CVA Proposal 29.5.09 – Part 1


    and particularly the "announcement..." & CVA proposals parts 1-3, pdf's all dated 29/5/09 - If you click on the links (if you have a pdf reader) all the details are there.


    It gives the background to them closing all those branches, and the huge loss made in the 6 months to 28/2/09. In short they propose an arrangement with their creditors that is to be voted on next week, whereby they will get support from the bankers to continue trading (in the remaining 5 branches) if their creditors agree to a settlement of 22% (ie 22 pence for every pound of debt) over a 5 year term. So somebody who is owed £1000 gets £44 in year 1, £44 in year 2, etc as long as the company is able to pay until the 5 th year and £220 in total. If they don't agree the company is "likely to go into administration".

    One of the pdf's has a list of creditors - it's pretty long.
     
  2. Geo

    Geo Trader - Funster

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    How does such a business survive after such an anouncment:RollEyes:
    In very simple terms they seem to be saying
    Were going to the wall
    we will pay you a fraction of what is owed, can we have more credit so we can carry on a bit longer, and owe you a bit more when we finaly go bang
    who in their right mind will trade with this company now
    or am I missing something:Doh:
    Geo
     
  3. andyman

    andyman Read Only Funster

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    Just been looking through the list of creditors and one of the biggest is Pack Leisure. Anyone know who they are. I wonder if I went into a discovery branch and offered to buy a Motorhome for 22% of the screen price and pay over 5 years would they do a deal :Rofl1::Rofl1::Rofl1::Rofl1:
     
  4. johnnerontheroad

    johnnerontheroad Read Only Funster

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  5. Johns_Cross_Motorhomes

    Johns_Cross_Motorhomes Trader - Motorhome & Accessory Sales

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    Accessory wholesaler, you will note that there are only a couple of major accessory suppliers on the debtors list, the rest could have been supplying on pro-forma
     
  6. wasp

    wasp Funster

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    I think I want to be a Liquidator have you seen the hourly rates they charge there is no wonder there are no monies left for creditors after they have taken their chunk.:cry::cry::cry::cry::cry:but then again 9.4 million worth of debt err hello
     
  7. saxon

    saxon Read Only Funster

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    Discover Leisure

    Starting to get a real sick feeling - having paid a deposit for a new Chausson three weeks ago, we are still waiting for confirmation as to when we can take delivery. Having agreed a trade-in value for our McLouis we have left it with them as the road tax has run out and we have had to cancel the insurance as we had to insure the new vehicle to get it registered and taxed. At the moment, all I stand to lose is £500 deposit and the fine if I'm caught driving my old mh back home. Only trouble is where else can we go? :Eeek::Doh:
     
  8. Johns_Cross_Motorhomes

    Johns_Cross_Motorhomes Trader - Motorhome & Accessory Sales

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    You cannot register and tax a non excistent vehicle, neither can you insure it.

    Peter
     
  9. Minxy Girl

    Minxy Girl Funster Life Member

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    So who owns your old MH at the moment then? If you still do - did someone SORN it? :Eeek:

    I don't understand why you had to cancel your insurance and tax though, you normally arrange for the insurance to cover both vehicles on the handover day, that's all, so you should have just got a cover note for the new one for when you needed (ie when they had given you a date!). What happens if your motorhome is damaged etc whilst it is uninsured if they don't insure it themselves (especially if you still own it)? If they do go into administration you could run the risk that your MH is seen as one of their assets depending on what agreement you have with them ...

    I really hope there isn't a problem for you, but if it were me, I'd be certainly looking to get my old MH back, regardless of the cost of insurance/tax, until I knew for certain what's going on and/or when I was definitely going to get my new one and hand the old one over then.

    There are a few dealers who sell Chaussons so you do have a choice - what model are you getting?
     
  10. Douglas

    Douglas Read Only Funster

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    Can anyone tell me, is Discover Leisure conected/owned/or part of Swift?

    Doug...
     
  11. saxon

    saxon Read Only Funster

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    Oh the vehicle exists alright - it was on display. Only trouble is that things keep cropping up to prevent us taking delivery. The latest is that the CPU has water in it and they are waiting for a delivery from Fiat in Italy. I have written to their Head Office and hoped that some 4rse kicking would get them into gear. :shout:
     
  12. Road Runner

    Road Runner Read Only Funster

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    They were very busy at their site near Wigan over Easter and loaded with stock and salesmen.

    How do they get away with it?
     
  13. gwnking

    gwnking Read Only Funster

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    If I remember correctly or incorrectly Burtree Caravans may of become part of this group and one address I do remember used to be that of Dave Barrons, having used to deal with each of these companies when I worked for Goodalls Caravans in the good old days rant rant.
     
  14. saxon

    saxon Read Only Funster

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    The new one is a Welcome 76 2009 model and we have searched the internet and the nearest one that comes up is in Somerset. 200 miles away is a bit too much.
    The tax ran out on ours just days after we were supposed to be picking up the new one and the insurance was something I have never heard of before - we had to get the insurance cover for ther new one with only a chassis number. This wasn't from the day of handover as you would expect - it was immediate so that Discover Leisure could get the vehicle taxed, and the tax and registration are done at the same time. I felt uncomfortable insuring a vehicle which didn't belong to me, but the insurance company were familiar with this on new motorhomes. When I put this down in words, I start to feel like a real idiot but until reading about CVA's I had no reason to believe that there may be a potential problem. I just figured it was poor site management which caused the delays. I plan to go there again tomorrow and try to sort this out - if I cannot, I will have no alternative but to cancel the order. :Sad:
     
  15. chatter

    chatter Read Only Funster

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    no they are not part of swift, from what i remember discover leisure is part of a motorfactor group and they bought a lot of decent companies and ruined them, a bit like the family that own man utd. companies that were not in debt were bought and used as collateral to buy more dealerships, culminating in most of the branches of the dealerships being closed and land for sale/sold off in order to keep the five they have left open, they did get outline planning for some of the plots before putting them on the market.The plot down the road from me that was a barrons site is for sale

    As an aside i would go and get my motorhome back from them untill you take delivery of the new one, depending on the paperwork it could be classed as their property and as such an asset to be sold on.
     
    Last edited: Apr 9, 2010
  16. tonybrightspark

    tonybrightspark Read Only Funster

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    Saxon

    If you paid your deposit by credit card that would be retrievable, would'nt it?
    Just paid 2 grand deposit on card for new MH with that in mind.


    tonybrightspark
     
  17. Jaws

    Jaws Funster Life Member

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    Saxon, that is fairly standard practice in the motorcycle game.. I certainly would not be concerned about it..
    I would however be concerned as to the whereabouts of my old m/home..
    I think it would be well worth a visit ( not a phone call ) to check it is there.
    In fact I would further ask for the keys and paperwork back in the light of the announcement .. I do not think that is unreasonable considering the fact that the executors could lay claim to your vehicle and sell it for a fraction of its value.. paying you said 22% of the sale price !!
     
  18. olley

    olley Funster

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    Years ago when these CVA's first came out, a property developer friend of mine used one, he paid a halfpenny in the pound :Eeek:

    He kept his house, cars ect. and also his property in the USA which he didn't declare.

    Olley
     
  19. Dave'N'Mags

    Dave'N'Mags Read Only Funster

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    Can I please just advise everyone not to touch Discover Leisure with a barge pole.

    Many of you will remember my posts over the last few months about the problems we have had with them in relation to a 12v electric problem (among other things) with our Bessacarr E435. Appalling customer after sales service. Everything still not completely sorted - and not likely to be now. They never do what they say they will, they lie, and have treated us as the lowest of the low.

    Stay clear.

    My personal opinion is that Id rather travel to the other end of the country to deal with a decent dealer in future.........Johns Cross might be a very long way from us, but I have a feeling that when the time comes for a new van, we may well make that journey.

    Mags
     
  20. saxon

    saxon Read Only Funster

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    Discover leisure

    Update on the above - It is now nearly the end of July - nearly 4 month after paying our deposit on new Chausson Welcome 76.
    We took delivery of it eventually for a weekend away 5th May. By way of compensation, they agreed to a Diamond White finish with polish kit and a reverse view camera. When we arrived to pick it up, the Manager couldn't remember promising the camera, so he agreed we pay half (could have got it done for half by the supplier). Found a number of faults during that weekend so motorhome went back to Discover. Faults included mis-aligned fridge/freezer so doors wouldn't close properly, ill-fitting drivers door, faulty paint job on the silver cab, etc.
    Eventually got it back and we went to Scotland for our first holiday proper. Half-way up the M6 at a steady 60mph, everytime a lorry overtook us, one of the skylight's banged up and down (found that it wasn't locking properly); didn't feel steady but spongy when parked; springs underneath making terrible squeeky noise when walking up and down inside, etc etc. We are now waiting for it to go back.
    Got a call from their sales team asking if we still had the book-pack for our old McLouis. They couldn't find it for the new owners. What a shower!
    Why did we go there? Because we were 1st class chumps and will never recommend them or buy from them again. The shine of our new motorhome has competely gone. For the sake of buying near to home, we have spent a lot of money and even more time just trying to get a motorhome in a satisfactory condition, that in our opinion, wasn't of saleable quality in the first place. :cry::shout:
     
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