CREDITORS owed money after the collapse of Sea View Coaches should get a “significant” amount of it after the business’s site was sold for £627,500.

The Poole business went into administration in April with the loss of 17 jobs.

Administrators later revealed that the business had faced difficulties since 2016 and was seeking a buyer when the coronavirus crisis ended hopes of a rescue.

Sea View Coaches goes into administration

In their latest update, joint administrators Neil Vinnicombe and Simon Haskew of Begbies Traynor said the sale of the company’s premises in Fancy Road had raised £627,000.

“This offer was significantly in excess of original estimates and several parties made offers resulting in a best and final bidding process,” they wrote.

17 redundancies as administrators seek buyer for Sea View Coaches

Most of the company’s coaches were leased from two finance companies, with the directors acting as personal guarantors of the finance agreements.

“One finance company suffered a significant shortfall and has pursued payment from the directors,” the report said.

Two “unencumbered” coaches were sold through an online auction and raised £19,000.

Staff have been helped to make claims to the government’s Redundancy Payments Office. “A significant number of enquiries were received from employees,” the report said.

Sea View Coaches to be liquidated after collapse

The company’s one secured creditor, HSBC, has been paid £172,106 in “full and final settlement” of its debts.

“We anticipate there will be a significant dividend available for the unsecured creditors once preferential creditors have been paid in full and the administration has been converted to a liquidation,” the administrators added.

In a previous report, the joint administrators said Sea View Coaches “traded profitably for a number of decades but first experienced difficulties in 2016”.

Rising competition hit sales and cash flow became tight. Some coaches were re-financed to raise cash but sales continued to decline.

The workforce was cut by half and many staff were on zero hours contracts or working part time.

The directors found a potential buyer but the would-be owner was busy with another transaction.

In the meantime, the directors were on the point of selling the Fancy Road site when the coronavirus crisis struck and the potential buyer reduced their offer, prompting the directors to pull out.

Sea View was placed into administration after various other options were discussed.