The operating company behind a pub, restaurant and leisure complex on the Bridlington seafront has entered administration.
Harrison Leisure Ltd encountered financial difficulties as a result of purchasing a long lease on land earmarked for a new site, including a Burger King franchise, shortly before the 2008 recession.
Brian Johnson and Abigail Jones of Fisher Partners were appointed as joint administrators to the company on 16 May.
Despite the company entering administration, 14 jobs have been secured at Harrison Leisure Ltd.
Johnson, partner at Fisher Partners, said: “Harrison Leisure had borrowed from its bank in 2007 to build a two storey unit on land it held on a long lease, and to purchase a Burger King franchise. Unfortunately the opening of the franchise coincided with the onset of the recession in 2008 and visitor numbers fell dramatically.
“The franchise had to be closed at great cost to the company and despite efforts to market and sell the business last year, no offers or expressions of interest were forthcoming.
“In an effort to save the business, preserve jobs and maximise recoveries for the creditors, the directors and shareholders, through Harrison Leisure Acquisitions Limited, set about the process of raising funds through a secured peer-to-peer lender and negotiating with the bank to buy out its debt and then to buy the business and assets as a going concern from the Administrators. After over six months of negotiation the deal was concluded with the joint administrators on 16th May 2014.
“The deal has ensured that a significant part of the Bridlington seafront has avoided being boarded up, the jobs of 14 permanent employees have been preserved as well as the jobs of temporary employees taken on in the summer season and the ultimate realisation has been maximised for the secured creditor.”