A huge theme park vision is under threat after a £100m debt was built up. The company behind the project has been forced to call in administrators.
The scheme, officially called The London Resort - but dubbed the "UK's Disneyland" - was first announced in 2019. It entailed building a huge £3.5bn theme park.
The six-land theme park hoped to open by 2024 on the Swanscombe Peninsula near Dartford, in Kent, across 535 acres. However, the project is now in the balance, according to the Sun.
Since plans were submitted, the scheme has run into a number of problems. Environmentalists feared that the proposed resort would harm wildlife, including a critically endangered jumping spider only found in one other place in the UK.
Another complication included a new freeport at Tilbury, which meant moving one of the ferry terminals from Tilbury to Grays. Last year, the resort plans were scaled back considerably.
A spokesperson for London Resort Company Holdings (LHRC) confirmed administrators had been called in after racking up £100m in debt. The company is to enter a financial restructure through a Company Voluntary Administration (CVA).
A spokesman for LRCH said: "LRCH has taken the logical and sensible step of launching the CVA proposal. We’ve spoken to many of our creditors who are very happy to support the initiative which would see their debts converted into shares."
They added: “Many millions have been invested into the Swanscombe Peninsula over the last decade and there remains a fantastic opportunity to bring forward exciting proposals. This CVA process safeguards everyone’s position and provides an opportunity for a financial return to creditors in the long-term."
Despite this, LRCH says the project is still ongoing, with new proposals for the development to be submitted later this year. Original plans for the park included a rollercoasters and a dinosaur-themed “prehistoric nature reserve”.
It was estimated that the project would generate £50bn over 25 years and be three times larger than any other UK theme park. It would be the biggest investment in Europe since Disneyland Paris in 1992.
Some 48,000 jobs would be created and developers pointed to the huge economic boost for the local area. Critics of the scheme, however, said a precious wildlife site would be destroyed.
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