A proposal to sell the Reayrt Vradda Glamping site near Port Erin as a going concern has been declined by the local authority, according to the company’s liquidator.
The glamping site, located on Ballafesson Road, has been at the center of operational and planning disputes, and officially ceased operations during the Isle of Man’s TT Practice Week in May.
Craig Mitchell of CKM Consultants, the appointed liquidator for Reayrt Vradda Glamping (RVG) Ltd, stated that three separate parties had expressed interest in acquiring the business.
He believed the proposal represented a viable option to revive the site and said the sale process could have been completed within four weeks, subject to Port Erin Commissioners (PEC) approving a new lease.
“Effectively the Commissioners had an opportunity to start the process again with a new lease,” Mitchell told Isle of Man Today. “In my opinion it is clear to anyone that with a fully engaged project manager in place the site could be fully operational in a matter of months.”
Mitchell confirmed that on June 9, a meeting took place at the site involving himself, RVG director John Lovelady, and PEC representatives including the chair, vice chair, and clerk.
During that meeting, he outlined the potential for a sale and urged support from the Commissioners.
However, on June 11, Mitchell was informed in writing that the Commissioners would not support the proposal, prompting him to initiate the process of disclaiming the lease.
Following that decision, the Commissioners voted at a recent board meeting to take steps to remove vehicles and camping infrastructure that remain on-site in violation of planning consent.
Notices are expected to be issued requiring all vehicles, equipment, and structures to be cleared within 21 days. Despite this, Commissioners’ clerk Jason Roberts noted that enforcement action could not proceed until the lease was officially disclaimed.
Mitchell argued that the Commissioners’ interpretation of the lease’s termination requirements had contributed to delays.
“Regretfully, the matter has simply stalled since that point. PEC have determined under advice that a deed of surrender was required to terminate the lease, which I consider to be unnecessary and which has caused delay,” he said.
The lease includes a clause allowing the Commissioners the option to purchase existing structures on the property. Mitchell emphasized that the Commissioners’ refusal to support the sale may have missed an opportunity to benefit both creditors and the broader Port Erin community.
“I appreciate the entire situation is unsatisfactory. However, I think there was an opportunity to resurrect the situation from the ashes of RVG which might have been in the better interests of the creditors, and one which would have not only provided a viable facility in the future which would have benefited the local economy but would also have addressed local residents’ concerns.”
For business owners in the outdoor hospitality industry, this case highlights the potential implications of local authority decisions on the viability of distressed assets.
When considering acquisitions or expansions involving local council-owned land, early and clear alignment with local governance structures can be a critical factor in moving projects forward or seeing them blocked.