Cairngorm Mountain Funicular Railway operator in administration
No plans to make any redundancies with the business set to operate as normal for the time being
Cairngorm Mountain Limited has been placed in administration.
The joint administrators say the operator the Funicular and other visitor attractions, will continue to trade talks are on-going with a potential buyer, with no immediate plans for redundancies among their 70 staff.
The railway's been closed since October 1st for investigative works on the tracks.
Unsustainable cash flow problems has caused the concerns over Cairngorm Mountain's future - with a turnover of £3.5 million pounds up to December 31st last year.
Commenting, Blair Milne, Business Recovery Partner with Campbell Dallas said:
“Due to the extended closure of the Funicular Railway at Cairngorm Mountain, for safety reasons, the business has become unsustainably loss-making. The Directors of the business had been in discussions to try to find suitable solutions, including a managed transfer of the business to another party, however those negotiations did not progress. Under mounting cash flow and creditor pressures the Directors were left with no alternative other than to place the business into administration. The joint administrators will be seeking to achieve a sale of the remaining business on a going concern basis as early as possible.”
The Cairngorm Railway and Mountain Snowsports centre are owned by Highlands and Islands Enterprise (HIE) and operated on its behalf under a lease by Cairngorm Mountain Limited.