PKF Smith Cooper has disclosed more details surrounding Ryedale Caravan & Leisure’s financial struggles, citing a “period of decline” in the caravan and leisure industry as the leading cause.
This announcement follows the news publicised earlier this month that Ryedale’s company directors are currently working with business recovery experts at PKF Smith Cooper to review the business’s financial position and explore the possibility of marketing the Leicestershire-based caravan retailer for sale.
The caravan and leisure sector has been in a period of decline for a while, with a large number of caravan dealerships being closed as a result.
Other caravan dealerships that have succumbed to the challenges facing the industry include Lady Bailey Caravans, a high-profile dealer of 30 years from Blandford Forum that recently announced its closure, and Alcester-based Broad Lane Leisure Limited, a similar sized dealership to Ryedale that entered into Administration on 9th July 2024.
Brett Barton, Business Restructuring and Recovery Partner at PKF Smith Cooper, said: “Whilst the industry enjoyed increased levels of success in the pandemic with the staycation boom, recent issues with rising ownership costs – including new caravans, running costs and site fee costs – have resulted in a period of contraction.
“Other external factors have also had an impact, such as the rise in electric car ownership and the limitation on towing capacity for this vehicle type. Electric cars are on average 1250kg gross weight compared with a VW Passat Estate that can tow 2000kg.
“In addition, towing a caravan significantly reduces the distance between charges for electric vehicles as the UK charging infrastructure is not set up for vehicles that are towing a caravan or a trailer. This means that you would have to park up, unhitch the caravan, charge the car and then return to re-hitch the caravan to complete your journey.
“Due to these factors, Ryedale Caravan & Leisure has been struggling to sell the requisite number of caravans to cover its overheads, which culminated in a large number of 2024 variants remaining on site while the new 2025 versions are now being offered elsewhere in the market.
“We are also aware through our industry knowledge that the manufacturers tried to stimulate the new caravan market by offering discounts at the show held at the NEC in October 2024 and then extended those discounts for several weeks after the show. This unprecedented step has further agitated the ability to sell the 2024 stock.
“The lack of sales of new caravans has meant that payments on account have become due and payable to the finance companies that provide stock finance to Ryedale. This pressure, together with other payments that had become overdue, led to the Board of Directors contacting our business restructuring and recovery team at PKF Smith Cooper for formal advice.”
