Mallory Park closure threat!!
Discussion
MALLORY PARK MOTORSPORT LIMITED TO BE PUT INTO ADMINISTRATION
It is with great regret that Mallory Park Motorsport Limited has today announced that the company has been put into Administration.
Mallory Park has been operating as a motorcycle and car race circuit for many years and has much history attaching to the circuit. In 1985 a highly restrictive Noise Notice was attached to Mallory Park Motorsport Limited ('MPML') embracing all circuit activities but, significantly, a number of the provisions within the Notice were very much open to interpretation.
MPML has enjoyed a long and fruitful relationship with Hinckley & Bosworth Borough Council over the years and a level of understanding had been established to work within the 1985 Notice. Regrettably, however, this arrangement was placed under scrutiny by local residents some of whom were new to the village, who made representations to HBBC to apply the rigid interpretation of the 1985 Notice.
MPML and the local authority worked extremely hard with the residents to find a compromise solution but, unfortunately, the council decided to prosecute MPML on five charges of the Notice during 2012 which involved operating on a Saturday over and above the four days agreed in the Notice. The court hearing took place in August 2013 and ruled that MPML was guilty of this breach on the five occasions, but MPML was given the right to take the establishment rights of the 1985 Notice to a higher court.
The immediate implication of the Court decision was to oblige MPML to observe the provision of the 1985 Notice, which allows only for 40 days racing on Sundays per annum (but with a dispensation to allow four Saturdays per annum) and testing on Wednesdays. MPML was accordingly obliged to cancel all track day operations, resulting in a significant loss of income (a situation also felt by local businesses and local employers) and use of the track for local community activities - young driver training etc. Overall, the imposition of such restrictions has inevitably led to MPML having a financially unstable business plan.
Following the Court case, MPML immediately implemented the highly restrictive conditions of the 1985 Notice, thus effectively reducing the circuit activity to two days per week. Significant losses were being incurred which no business can sustain. It was clear that a more dynamic approach needed to be taken to overcome the significant hurdles and two weeks ago MPML developed an innovative three stage Recovery Plan to take Mallory forwards which would hopefully meets the wishes of the residents and form the basis of a viable business.
Very constructive dialogue was held with the Leader of HBBC and senior officials and we were receiving very encouraging reactions from them to the Plan. A fundamental component of the Plan was the agreement of the Land Owner to reduce the annual lease rental, which had risen by over 40% over the last eight years and had reached untenable levels. Very regrettably, despite intense work by the MPML board, the Land Owner - Titan Properties Ltd - refused to make a substantive offer to allow the Recovery Plan to proceed.
British Automobile Racing Club were keen to support MPML (and did so up to the final race meeting yesterday by paying for certain essential supplies allowing the meeting to place) and indeed would have supported MPML to ensure all its trade creditors were paid. To that end, it needed the support of the Landlord with a sustainable rent but, regrettably, this was not possible to achieve.
Accordingly, having no firm visibility into 2014 and beyond, MPML directors had no option but to place the company into Administration.
The administrator, Ian Robert of Kingston Smith & Partners LLP, commented: “I will be working with all the stakeholders to ensure that Mallory Park will see racing again. I hope the administration process can assist in finding a solution which will be beneficial to all parties concerned.”
He continued: “To that end, I will be negotiating with the landlord and the council, with the support of the BARC, to ensure that racing can be enjoyed at Mallory Park for years to come. Although it is early days, I am hopeful that, once a solution to the lease is found, all of the company’s creditors should receive a substantial dividend, which I understand is very much the driving force behind the continued support of the BARC.”
It is with great regret that Mallory Park Motorsport Limited has today announced that the company has been put into Administration.
Mallory Park has been operating as a motorcycle and car race circuit for many years and has much history attaching to the circuit. In 1985 a highly restrictive Noise Notice was attached to Mallory Park Motorsport Limited ('MPML') embracing all circuit activities but, significantly, a number of the provisions within the Notice were very much open to interpretation.
MPML has enjoyed a long and fruitful relationship with Hinckley & Bosworth Borough Council over the years and a level of understanding had been established to work within the 1985 Notice. Regrettably, however, this arrangement was placed under scrutiny by local residents some of whom were new to the village, who made representations to HBBC to apply the rigid interpretation of the 1985 Notice.
MPML and the local authority worked extremely hard with the residents to find a compromise solution but, unfortunately, the council decided to prosecute MPML on five charges of the Notice during 2012 which involved operating on a Saturday over and above the four days agreed in the Notice. The court hearing took place in August 2013 and ruled that MPML was guilty of this breach on the five occasions, but MPML was given the right to take the establishment rights of the 1985 Notice to a higher court.
The immediate implication of the Court decision was to oblige MPML to observe the provision of the 1985 Notice, which allows only for 40 days racing on Sundays per annum (but with a dispensation to allow four Saturdays per annum) and testing on Wednesdays. MPML was accordingly obliged to cancel all track day operations, resulting in a significant loss of income (a situation also felt by local businesses and local employers) and use of the track for local community activities - young driver training etc. Overall, the imposition of such restrictions has inevitably led to MPML having a financially unstable business plan.
Following the Court case, MPML immediately implemented the highly restrictive conditions of the 1985 Notice, thus effectively reducing the circuit activity to two days per week. Significant losses were being incurred which no business can sustain. It was clear that a more dynamic approach needed to be taken to overcome the significant hurdles and two weeks ago MPML developed an innovative three stage Recovery Plan to take Mallory forwards which would hopefully meets the wishes of the residents and form the basis of a viable business.
Very constructive dialogue was held with the Leader of HBBC and senior officials and we were receiving very encouraging reactions from them to the Plan. A fundamental component of the Plan was the agreement of the Land Owner to reduce the annual lease rental, which had risen by over 40% over the last eight years and had reached untenable levels. Very regrettably, despite intense work by the MPML board, the Land Owner - Titan Properties Ltd - refused to make a substantive offer to allow the Recovery Plan to proceed.
British Automobile Racing Club were keen to support MPML (and did so up to the final race meeting yesterday by paying for certain essential supplies allowing the meeting to place) and indeed would have supported MPML to ensure all its trade creditors were paid. To that end, it needed the support of the Landlord with a sustainable rent but, regrettably, this was not possible to achieve.
Accordingly, having no firm visibility into 2014 and beyond, MPML directors had no option but to place the company into Administration.
The administrator, Ian Robert of Kingston Smith & Partners LLP, commented: “I will be working with all the stakeholders to ensure that Mallory Park will see racing again. I hope the administration process can assist in finding a solution which will be beneficial to all parties concerned.”
He continued: “To that end, I will be negotiating with the landlord and the council, with the support of the BARC, to ensure that racing can be enjoyed at Mallory Park for years to come. Although it is early days, I am hopeful that, once a solution to the lease is found, all of the company’s creditors should receive a substantial dividend, which I understand is very much the driving force behind the continued support of the BARC.”
Mark Benson said:
Life Saab Itch said:
covboy said:
I posted this in a thread last November when things started to come to a head
"Spoke to someone who knows a few people who live in Kirkby Mallory, and it seems that the main complaint is that the Circuit is taking it’s use right up to the limits of the planning permissions. (not quite taking the p**s)
Not just Motorsport I believe but other events there have not helped.
Seems in the past the previous owners/leaseholders were more than accommodating with the locals in terms of use, but the current people seem hell bent on screwing every last drop out of it’s use.
(Adding to the above, it seems the locals wanted to keep this below the radar in case it affected property prices and hoped to sort things out with the circuit management, but it now seems to be a bit more public, so expect some big guns to start taking an interest) "
The circuit is a business. They sound like they are trying to be a productive business within the strict guidelines they have set out for them. They would be cap business people if they didn't."Spoke to someone who knows a few people who live in Kirkby Mallory, and it seems that the main complaint is that the Circuit is taking it’s use right up to the limits of the planning permissions. (not quite taking the p**s)
Not just Motorsport I believe but other events there have not helped.
Seems in the past the previous owners/leaseholders were more than accommodating with the locals in terms of use, but the current people seem hell bent on screwing every last drop out of it’s use.
(Adding to the above, it seems the locals wanted to keep this below the radar in case it affected property prices and hoped to sort things out with the circuit management, but it now seems to be a bit more public, so expect some big guns to start taking an interest) "
NiMbys complaining at legitimate, legal stuff. Typical.
They'd be really crap business people if they took the issue so far that the previously tolerant locals felt no other option than to speak to the council, which resulted in punitive noise restrictions, making yet another circuit unviable.
Having been around Croft when the noise issues hit there, this sounds like it's a different situation. Croft's was a malicious action brought by an estranged wife and her family, Mallory seems like a village that's traditionally been tolerant (and you'd have to be tolerant of the circuit if you moved into Kirby Mallory, it's practically in the village) having their patience tested to breaking point.
I could be wrong, but having met several residents of Kirby Mallory on the many visits I've made to Mallory Park, I don't think this is a case of NIMBYism - it's not like you can miss the circuit at the end of your garden when you buy the place, is it?
My Wifes best friend lives in the village and has done for many years. Its not that they want the Circuit closed they just want some cooperation from the operator. Things have been ramped up by the operators seeking to make the business more profitable and they have pushed the residents to breaking point. Stupid brinkmanship by the company who have done their level best to alienate the village.
Mallory is right in the village too, the noise they are allowed to go to is already way more tolerant than Bedford for example where there is nobody anywhere near the place.
king NIMBY'sSystemParanoia said:
Pothole said:
27hur said:
It's a bit of both surely.
Not really, no.they complained about something in their back yard..
it got banned
is that not the definition of a NIMBY
The operator has handled this really badly.
as I posted in another thread lots of misinformation in here before apportioning blame do some research:
before blaming the residents I would read up on the case further . I did and have concluded that the management company are to blame for this and the winding up of them can only come quicker it will then be sorted and return as a venue but without the night time drifting events and raves until the early hours of the morning!
They haven't exactly been good neighbours of late or done our hobby/profession any favours at all.
Titan properties is still owned by Chris Meek former GT driver and I would be sure he would want shot of the current operators to allow the business to effectively reset , hence his company would not cooperate with lowering the rental.
before blaming the residents I would read up on the case further . I did and have concluded that the management company are to blame for this and the winding up of them can only come quicker it will then be sorted and return as a venue but without the night time drifting events and raves until the early hours of the morning!
They haven't exactly been good neighbours of late or done our hobby/profession any favours at all.
Titan properties is still owned by Chris Meek former GT driver and I would be sure he would want shot of the current operators to allow the business to effectively reset , hence his company would not cooperate with lowering the rental.
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