CAIRNGORM Mountain Limited has been placed into administration after the closure of the funicular railway left them struggling with “unsustainable cash flow problems”.
Administrators says they’ll continue to trade while seeking a potential buyer, and have promised that there “are no immediate plans to make any redundancies”.
The business, which employs around 70 staff, has had a number of problems recently.
The funicular is currently closed while inspectors study a problem with the steel bearings between concrete parts of the structure that allow for movement in temperature changes.
That indefinite closure led to bosses at the Cairngorm Snow School telling instructors they would have to shut for the season.
Blair Milne, Business Recovery Partner with Campbell Dallas said the difficulties had “become unsustainably loss-making”.
He added: “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 is owned by Highlands and Islands Enterprise (HIE) but has been operated under a 25-year-lease by Cairngorm Mountain Limited, a company set up by Cheshire based Natural Retreats, since 2014.
Charlotte Wright, chief executive of HIE, said they had “anticipated” the administration: “Our first priority is staff members and their families, as well as other local people who will be affected by this decision.”
She assured locals that the administration would not impact the set up of £1m worth of snow-making equipment, paid for by HIE.
Highlands and Islands Green MSP John Finnie said he had “repeatedly raised concerns with HIE about the running of Cairngorm Mountain”.
“HIE has invested significant public monies in the site, yet it is unclear how, if at all, this has benefitted the local community.
“Now that the operator Natural Retreats has tucked its tail between its legs and headed off into the wilderness, it is vital the HIE pulls out all the stops to save local jobs, and ensure that all future investment benefits the local economy.”
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