Lunar Caravans make 124 workers redundant as sale process stalls

Lunar Caravans went into administration on July 16
Lunar Caravans went into administration on July 16

Administrators at a troubled Lancashire caravan firm have made 124 workers redundant.

Partners David Acland and Lila Thomas from administrators FRP Advisory LLP made the announcement last night ahead of Lunar Caravan’s planned summer shut down.

They said there were insufficient funds within the ailing firm and were yet to receive an acceptable offer for the business.

Read more>>> 142 production workers 'laid off' as Preston company Lunar Caravans enters administration

Lunar, which is based in Lostock Hall, was placed into administration earlier this month and has been up for sale ever since.

Mr Acland said: “Despite a significant amount of interest from UK and international buyers, we are yet to receive an acceptable offer for the business as a going concern.

“We are now approaching the planned summer shut down and without funds to continue we have sadly had to make 124 redundancies.

“Our priority is now to ensure those affected have the support they need during this difficult time and we will be working closely with Unite and South Ribble Borough Council to do this.

He added: “Our priority was to find a buyer for the business as a going concern before the planned summer shut down and whilst this has not happened, we are still in discussions with interested parties and remain hopeful of a positive outcome.”

The firm was placed into administration on July 16 but the previous month 142 short-term employees were placed on temporary leave after the business began operating at reduced capacity.

The company designs and manufactures lightweight touring caravans from its production facility in Sherdley Road.

Before yesterday’s job losses, it employed 196 people in total.

Bosses blamed a combination of “severe cash flow issues” and “challenging trading conditions” for its difficulties.