UK marina falls into administration after ‘horrendous’ wage backlog

A company that provides berthing and marine services at a grade II-listed Welsh marina dating back to the 18th century has fallen into administration.

Simon Monks, Nicola Clark and Colin Haig, of UK accountancy firm Azets, have been appointed joint administrators of Port Dinorwic Marina Limited.

Port Dinorwic Marina Ltd provides berthing and marine services at the picturesque grade II listed marina at Port Dinorwic (Y Felinheli), with 180 berths offering year-round cruising in the Menai Strait, which separates North Wales and Anglesey.

Port Dinorwic Marina, which dates back to 1763, was acquired in 2017 by The Marine and Property Group Limited, which owns and operates marinas at Cardiff, Burry Port, Aberystwyth, and Watchet. Property Group Limited was also placed in administration in April 2023.

Cardiff-based The Marine & Property Group had come under fire in recent months for not paying staff wages or pension contributions amid concerns over the firm’s financial situation. Director of MPG, Chris Odling-Smee, told Business Live in January that the delayed salary issues were related to cashflow.

In January, Wales Online reported how staff at Port Dinorwic Marina had to resort to borrowing from friends and ‘maxed out’ their credit cards to see themselves through Christmas, after a ‘horrendous’ wage backlog. Some of the berth owners reportedly set up a crowdfunding page to support the marina’s team.

In April, Cambrian News reported that pressure had been mounting on The Marine and Property Group Ltd after berth holders at the firm’s Aberystwyth marina had threatened not to pay mooring fees, equipment was impounded by bailiffs and legal disputes broke out with contractors.

A group, claiming to represent a significant proportion of the site’s 128 paying berth holders, called on the company to give up the freehold and allow Ceredigion County Council to take over.

Cambrian News reports that, in an anonymous letter, they slammed the firm’s Switzerland-based director Odling-Smee and took aim at what they described as the Y Lanfa site’s worsening condition.

In the letter, the berth holders refer to filthy toilets, bins overflowing, rat infestations, a lack of boat servicing, parts not being ordered, electrical outages, fuel shortages and safety concerns.

Azets confirms that Port Dinorwic Marina Limited ‘has experienced financial difficulties in recent months’, with marina operations ‘not reaching their potential during ongoing economic and financial uncertainty since the beginning of this year.’

The joint administrators say they will continue to trade as Port Dinorwic Marina Limited while completing a rapid assessment of marina operations.

Simon Monks, restructuring director with Azets and joint administrator, comments: “Port Dinorwic Marina Limited has been experiencing significant financial difficulties in recent months, to the extent a viable turnaround could not be achieved outside of an administration process, despite the best efforts of the board.

“We will immediately begin the process of understanding the underlying issues and finding a sustainable solution, with a view to achieving the very best outcome for staff, creditors and the local community. In the meantime, the continued cooperation of stakeholders is appreciated.”