A ‘luxury’ glamping site being used by TT visitors is facing an uncertain future after the company that runs it announced it is set to go into liquidation.
Reayrt Vradda Glamping Ltd, which operates the campsite on Ballafesson Road on the outskirts of Port Erin, is to hold an emergency general meeting on June 5 when a resolution will be proposed for the voluntary winding up of the company.
Director John Lovelady said: ‘The board has no alternative as it has insufficient access to funds to continue to trade and complete the works required.
‘The project is disappointingly behind schedule and despite it raising a considerable amount of money the company has insufficient funds to continue.
‘The time delays didn’t help, however the weather last autumn and throughout the winter exasperated the problem.’
Reayrt Vannin’s website advertised eight luxury glamping pods, eight large bell tents and a hardstanding area to accommodate up to 21 campervans and caravans.
But while there are some motorhomes and caravans currently there for the Isle of Man TT and a number of the bell tents occupied, much of the site remains an uncompleted eyesore, with major groundworks left unfinished. The glamping site itself had been due to open this month.
The site is owned by Port Erin Commissioners and leased to Reayrt Vannin Glamping.
There were three members of staff who have now been made redundant, left the company or have resigned.
Stuart Owens resigned as director and site manager.
In a Facebook post, he explained he had done so ‘due to the direction John Lovelady was taking the company’.
Customers who have signed up for pods have been querying where they will be left if the company is wound up.
One said: ‘Where does that leave pod owners, who have paid in part or in full and have signed contracts?’
Asked about those already camping on the site, Mr Lovelady said: ‘The board is working hard to find a solution.
‘No bookings are being taken at present as the company has to cease trading, if deposits have been made, they will be treated as a creditor of the company.’
Asked what the position of customers who had paid for pods was, he replied: ‘Again, the board is working closely with the owners to find a suitable solution.’
He insisted all staff were paid for April out of his own pocket except for Mr Owens who he said had agreed to wait for his payment.
Mr Lovelady added: ‘I requested an extraordinary board meeting to discuss the company current financial position and way forward. However, 15 minutes prior to that meeting Stuart resigned. The board decided unanimously to commence with voluntary liquidation.
‘Obviously Stuart is one of the creditors. There are a number of invoices not paid.’
Commissioners clerk Jason Roberts said: ‘The board and residents have been concerned about the length of time the project has taken. Post-Covid a lot of building costs have increased.’
It went on to petition the government to borrow £163,567 to fund infrastructure works on and around the site.
Reayrt Vradda Glamping signed the lease on the 10-acre site in June 2021.
Its original business plan was to have eight luxury glamping pods followed by 10 standard pods in the first year with a further 10 pods in year two.
Facilities were relocated from a sister site at Glen Helen following its closure last year.
Sales of £300,000 were forecast by the end of the first financial year rising to £600,000 by the end of year three.
Glamping pods and chalets were offered as an investment opportunity, priced at £60,000 and £90,000 respectively, with the prospect of potential returns of 10-12%.
Commissioners board members toured the site last September when they said they were impressed with progress made.
Addressing concerns about the site being an eyesore, Mr Lovelady said: ’We are tidying the site at present and making the area safe as the board feels this is a minimum requirement.’
He said the company currently has eight shareholders and four of those had put in a ‘considerable amount of funds’ and are ‘extremely disappointed’ the project could not be completed.
The company’s latest annual return, for the 12 months up to December 7 last year, show that the main and preferential shareholder is Afghan national Saira Rahimy, whose occupation is given as entrepreneur with an address in Hartlepool.
Ms Rahimy is also recorded as director, alongside Marown commissioner and developer Mr Lovelady, island-based fund manager Michael Haxby and two Nigerian nationals - entrepreneurs Omolade Eunice Diran-Onim, of South Quay, Douglas, and Adekanlaalake Adegoke, of Anagh Coar.