A Montrose caravan park has been plunged into crisis after administrators were called in.
The South Links facility a magnet that drew generations of holidaymakers to the Angus town was the subject of a landmark private lease deal involving Angus Council and WOW Leisure back in 2009.
Angus Council said the decision to bring in the administrators follows the termination of the lease between the council and WOW Leisure Ltd in May.
A council spokeswoman said: “WOW Leisure had not met the conditions of the lease and failed to make payments due the council.
“The administrators will run the business while assessing its operations and determining what assets can be recovered.
“The council is not taking any immediate action in relation to the operation of the site.
“Caravan owners will be notified of the current situation and how it may affect them in due course.
“Caravan owners concerned about the impact of this change in circumstance on their contractual arrangements should seek legal advice.”
The nine-acre grassy site can accommodate around 160 caravans and tents and has earned a four-star rating from the Scottish Tourist Board.
Montrose councillor David May said: “I have considerable concerns for the people living on the site.
“Until a clearer picture emerges of what is happening, I have given them as much advice as I can at this stage.”
The council’s decision to offer the South Links and other caravan parks for lease sparked controversy among councillors at the time.
The scheme was designed to maximise income but opposition councillors expressed fears the transfer could lead to “ghettos” if residential units were allowed on the sites.
However, after assurances that control would remain firmly with the council, the authority voted to go ahead with the scheme.
Montrose businessman Bill McDonald was granted the licence for South Links and spent seven figures upgrading the site in recent years.
Only last year South Links Holiday Park received permission to open all year round, after previously only being allowed to open between March 1 and January 31.
Mr McDonald directed our inquiries to his Arbroath-based solicitor, Nick Whelan.
It is anticipated a company statement will be issued by the lawyer over the weekend.