Administration threat to Great Leighs’ future

The future of Britain’s newest racecourse is in serious doubt after Essex County Showground Ltd, which manages Great Leighs, went into administration last night.
Nine turbulent months after the racecourse opened, administrators were called in when the British Horseracing Authority (BHA) rejected an extension to Great Leighs’ licence to race, having been sufficiently concerned by the deteriorating financial position effectively to shut down the Essex venue.
It did so amid persistent complaints from suppliers over lack of payment as creditors mounted, and the increasing failure of the racecourse to meet its financial commitments towards prize-money. Only four months ago, the BHA had made threatening noises over a six-figure debt that Great Leighs had built up with Weatherbys, which distributes prize-money to racehorse owners. The debt was paid, but rumours persisted that building the track had put an intolerable financial burden on its owner, John Holmes.
Only yesterday, Holmes had pledged to return to the BHA’s offices next week to reapply for the licence to race. That process will now fall to the administrators, Carlton Siddle and Nick Edwards, of Deloitte. They plan to run the business as a going concern while exploring the possibility of selling the venue near Chelmsford.Great Leighs, Britain’s first new racecourse since 1927, has been stalked by controversy from the outset. After numerous delays to its start date, the track opened last April with a lauded racing surface, but precious little by way of facilities for the paying public.
At the time, Holmes maintained that facilities would quickly improve, yet few enhancements were forthcoming. One of Britain’s leading trainers, Jeremy Noseda, was so appalled on his inaugural visit that he said: “This is like going back to the Dark Ages. It’s a good track to run horses round, but as a leisure experience, it’s a disgrace.”
Speculation will centre on who could buy Great Leighs at a time when borrowing money has never been more difficult. Ironically, Holmes is understood to have rejected an eight-figure offer from Northern Racing Ltd to buy the site in the months before it opened for business.
The proprietor of ten racecourses, Northern is owned by David and Simon Reuben. The brothers, property and investment entrepreneurs, have increased to about 23 per cent their stake in Arena Leisure, which manages Great Leighs and owns five other tracks. Their position has fuelled speculation that Northern and Arena will merge into one company with control of nearly 30 per cent of Britain’s 60 racecourses.
Delayed reactions
Feb 04 Project receives official approval — opening date Dec 2005
May 05 Opening put back to June 06, then Oct 06
Aug 06 Surrenders first six fixtures, new opening date Feb 07
Jan 07 Opening date put back to June 07, then Oct 07, then Feb 08, then Apr 08
Apr 08 Licence to race rejected pending safety improvements
Apr 08 Stages first meeting but without paying customers. Racing surface praised but facilities primitive
May 08 Paying customers admitted
Sep 08 Meetings under threat until debt with Weatherbys cleared
Dec 08 Annual licence application rejected; two-week temporary licence issued
Jan 09 Temporary licence not renewed — track closed
source:the london times