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Mountain rail firm hits buffers over cash flow | UK | News

Mountain rail firm hits buffers over cash flow | UK | News 1052428 1

The attraction at Cairn Gorm has been shut since the start of October because of safety concerns over structures supporting the tracks. The funicular takes skiers, snowboarders and walkers two kilometres up Cairn Gorm mountain, carrying around 300,000 people every year. It opened on Christmas Eve 2001 following an investment of around £20million.

Administrators Campbell Dallas say there are no immediate plans for redundancies at CairnGorm Mountain Ltd, which operates the railway.

It will continue to trade during discussions with a potential buyer. Highlands and Islands Enterprise (HIE) said it is confident the situation can be turned around.

Last month, it approved a £1million investment in a snow-making machine and snow cannons to ensure the mountain can open for skiing this winter.

Blair Milne of Campbell Dallas, said:  “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 HIE and operated on its behalf under a lease by CairnGorm Mountain Limited, which employs around 70 staff.

Charlotte Wright, chief executive of HIE, said: “Our first priority is staff members and their families, as well as other local people who will be affected by this decision.

“We are confident that the situation can be turned around and we will see Cairngorm flourish again as a fantastic asset for this area and its economy.”

Source : EXPRESS

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