Holiday lodge operator with parks across East Anglia collapses into administration
PUBLISHED: 18:09 17 January 2019 | UPDATED: 09:02 18 January 2019
The Dream Lodge Group, which operates holiday homes across the East of England has collapsed, making 80 people redundant.
The group, which is owned by Norfolk Park Homes, attributed its demise to by a “period of financial pressure”.
Dream Lodge operates eight sites across the country, including a luxury holiday park in Bury St Edmunds.
Its site is Fornham Park, where 27 lodges are set in parkland which was once the Duke of Norfolk’s estate.
The company, which is headquartered in Clacton-on-Sea, also has Norfolk’s North Walsham Caravan and Chalet Park and close by, Norfolk Park Homes.
A member of staff at Norfolk Park Homes said: “We are not taking any new bookings.”
The spokesman continued that of the 200 plots on site, some are already empty.
The Norfolk Park Homes outlet included a heated outdoor swimming pool as well as an on-site gym, spa and bike hire.
Administrators Deloitte have been bought in to close down the company, a move which is thought to leave shareholders millions out of pocket.
According to Richard Hawes and Rob Harding, restructuring partners at Deloitte, the Dream Lodge Group was impacted by a “period of financial pressure”.
They added: “Given the immediate funding constraints and seasonality of the business, it has been necessary to make 80 out of the 121 employees redundant with immediate effect.”
As well as in East Anglia, The Dream Lodge Group, also operated Blosson Hill Park in Devon, The Sanctuary in Berkshire, Woodlands Park in East Sussex and Lazy Otter Meadows in Ely.
Investors were attracted to The Dream Lodge Group by promises of personal use of the holiday parks, as well as either fixed rental income or a guaranteed profit after three years.
The largest payout to the brand was £145,000.
Investor fears were raised in October, when “guaranteed return” payments failed to arrive and the company missed a deadline.
A month later, the group appointed auditors KPMG to enact an “options process” in a bid to find further investment or a buyer for the business.