Royale Group owned approximately 100 holiday parks across England, specialising in providing bungalows for the over-45s. The business had expanded aggressively through debt-financed acquisitions, accumulating around £1.5 billion in liabilities across multiple lenders. One lender, who had also provided bridging finance to support park acquisitions, appointed FRP after the group collapsed. The fall of Royale flooded the market with assets, distorting valuation metrics that were often based on unachievable assumptions around conversion to residential use. Strategic growth and the need for a new approach
Developing an alternative strategy to maximise value
Delivering stability through flexible execution
Initially, fixed charge receivers were appointed by the lender, but this approach quickly proved value- restrictive. FRP devised an alternative recovery strategy focused on maximising value through a more flexible structure. This involved replacing the incumbent receivers, appointing administrators over the holding company, replacing directors at the operating company level, and engaging sector specialists for detailed planning and options analysis. This pivot allowed for continued trading, selective capital expenditure, and more controlled asset management—none of which were possible under the Receivership route.
The shift to administration enabled Royale’s assets to be held in a more stable position while initiating capex works to enhance value. To address concerns over costs, FRP implemented a flexible fee structure tied to value recovery, aligning all parties toward maximising outcomes. Planning specialists were also engaged to ensure licenses and consents reflected current operational use. The portfolio is now stabilised, and value-enhancing works are underway. This assignment is a strong example of FRP’s ability to deliver innovative, value-focused restructuring solutions in highly complex cases.
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