When Aberystwyth marina collapsed into administration staff wages were unpaid for two months and two staff members have since been laid off, an administrator update report has said.

The Marina crashed into administration last June after its parent company collapsed with estimated debts of £14 million and owing the taxman £1.8m.

Damian Webb and Chris Lewis of RSM UK were appointed as the administrators of The Marine & Property Group Limited after it entered administration in April 2023, followed by administrators being called in to Aberystwyth Marina Limited after HMRC launched a petition to wind it up.

This week, administrators released an update report which showed that staff had been laid off, a loss had been made, and a potential sale delayed until later this year.

“Upon appointment wages were in two-month arrears and there was risk that employees would leave the business,” the report said.

“This would lead to significant issues due to loss of knowledge and relationships with the customer.

“The administrators concluded it would be best to clear these arrears.”

The report said that “two redundancies were made” following the appointment of administrators.

Mooring fees at the Marina have been increased in a bid to boost cash levels, while “discussions with key suppliers to reinstate lines of credit” have also taken place.

While in administration, the report says, Aberystwyth Marina has recorded an operating loss of £8,660, “primarily due to unoccupied units at Harbour House and substantial one off costs which were necessary for maintaining operational status.”

Administrators warned it is “unlikely” that any unsecured creditors of the company will be paid.

“Due to the cash flow issues across the group it is uncertain whether any debt would be able to be recovered,” the report said.

Administrators said they “will continue to trade the business to explore the possibility of selling the company and/or its business and assets on the terms they consider to be most beneficial to creditors of the company.”

The report says there have been around 30 expressions of interest in acquiring the Marine and Property Group as a whole.

The report said that it was originally hoped to sell the businesses within four to six months but that had now been extended to 12 to 18 months in the hope of an improved performance.

Administrators said they “believe that the best way of achieving a sale of the business is a prolonged period of trade that showcases the underlying performance of the company.

“This process has been placed on hold until spring/summer 2024.”