Margate's Dreamland park operator owes £3m to creditors

Dreamland has been transformed in time for Christmas

The operator of a seaside theme park with vintage rides is facing debts of almost £3m months after it reopened.

Sands Heritage, which runs Margate's Dreamland amusement park, is seeking a company voluntary arrangement in a bid to avoid going into administration.

It means it will be able to carry on operating and creditors will be paid in full over a five-year period. The park said it was grateful for their support.

Creditors will decide whether to accept the arrangement on 23 December.

Thanet District Council, which owns the entire site, has already paid an additional £1m of taxpayers' money to the park.

However, Roger Gale, the Conservative MP for North Thanet, said he believed the council was largely to blame for the financial crisis.

"It's let down Sands Heritage very badly," he said.

The Scenic Railway did not open until October

Mr Gale accused the council of failing to deliver the Scenic Railway on time, and failing to provide four rides, the implications of which had cost the operators money.

He also said the council had received Heritage Lottery funding to restore and refurbish the rides, which had not happened in time for the season.

He added Dreamland's cashflow problem had been exacerbated because the council "should have delivered on the things that it was supposed to have delivered on".

In a statement, a council spokesman said it was disappointed to learn that Sands Heritage was entering into formal arrangements with its creditors, but that it was not a matter for the council.

"Allegations reported in the media that we have breached contracts are strongly denied," he said.

Dreamland opened to the public in June but the Scenic Railway, thought to be Britain's oldest rollercoaster, did not open until 15 October.

Dreamland's chief executive Eddie Kemsley said the company voluntary arrangement (CVA) would enable it to "draw a line on a series of delays and late investments that have hindered our intentions to provide the best all-round experience for all of our visitors".

In an interview with BBC Radio Kent last week, she said opening any new business "was tough".

"You don't know what's going to work, what's going to be well received... a site like Dreamland is very unique.

"There's isn't a blueprint as to how to run something like this."