Mallory Park closes

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Mallory Park closes

Post by scimjim » Mon Sep 30, 2013 5:46 pm

From another site:

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.”


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Re: Mallory Park closes

Post by Roger Pennington » Mon Sep 30, 2013 5:56 pm

That's very sad :( Hope they do manage to find a workable long-term solution.....


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Re: Mallory Park closes

Post by philhoward » Mon Sep 30, 2013 5:57 pm

I shall sit on my hands... :w


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Re: Mallory Park closes

Post by scimjim » Mon Sep 30, 2013 6:03 pm

there's been plenty of discussion elsewhere regarding their adhesion (or otherwise) to the 1985 notice (and business cases based on non-compliance of regulations) - right or wrong, we can't afford to lose any venues, they're few and far between enough already :-(


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Re: Mallory Park closes

Post by scimjim » Mon Sep 30, 2013 6:28 pm

never been, so I thought I'd see how many residents were affected:
Mallory.jpg
Mallory.jpg (201.28 KiB) Viewed 2214 times
so a few ruin it for the thousands.

Having lived on or near active runways for most of my life, I'm probably not the best person to ask - but I'd prefer to live in a village with a racetrack and thriving local economy than a business park or commuter town - because if they sell that land, it's immediately available for building houses on and the government will pounce on it.


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Re: Mallory Park closes

Post by philhoward » Mon Sep 30, 2013 6:37 pm

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.
You move to next to a racetrack, 20 Sundays a year aren't an issue yet a couple of extra saturdays are?

I know rules are rules, but there seem to have been a happy medium for the last 27 years....

I hope the landlord is happy - he now gets nothing per year...or the newbies in the village don't mind the construction work and (insert number here) new homes surrounding their countryside idyll..


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Re: Mallory Park closes

Post by MikeyBikey » Mon Sep 30, 2013 6:51 pm

makes my blood boil. Would the councils et al follow the same approach to stopping a church ringing its bells on a sunday.


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Re: Mallory Park closes

Post by cookieboy » Mon Sep 30, 2013 6:56 pm

its the same with brands hatch .as they can only use the gp loop a few days a year .and when I worked there on the maintenance it was my job to monitor the noise from outside the circuit .another farce of planning and council red tape .


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Re: Mallory Park closes

Post by Scimher » Mon Sep 30, 2013 7:05 pm

...If we can get the circuit to become a 'mecca' for gypsies & new-age-travellers, I would suspect the locals - no change that to 'residents', would be desperate for it to be a motor sport venue again.......& this time with NO restrictions......!!!! :twisted:



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Re: Mallory Park closes

Post by AndyD » Mon Sep 30, 2013 7:06 pm

Tragic.

Cracking circuit. Super friendly, inclusive, well run, and dare the scotsman say it, affordable.
philhoward wrote:
You move to next to a racetrack,

...or the newbies in the village
really, what do they expect??

I know that there will be a lot of sides to this, and a bit of politicking, but I see a bit of a parallel re. hassles with "moveovers" to the Isle of Man the Manx GP and TT... You can't really live next to (or on!) a race circuit and not get a bit of noise...

(anyway, its a nice noise :mrgreen: )



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Re: Mallory Park closes

Post by AJL Electronics » Mon Sep 30, 2013 7:38 pm

MikeyBikey wrote:makes my blood boil. Would the councils et al follow the same approach to stopping a church ringing its bells on a sunday.
You think that's a jest? It has happened and will continue to happen sadly. It baffles me that people will move next to something like an airfield and then complain about the aircraft. Absolutely baffling.


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Re: Mallory Park closes

Post by tony.idle » Mon Sep 30, 2013 7:47 pm

You need to live here if you think noise doesn't matter. Bloody cows, sheep, dogs, even the squirrels chatter. And the motorway's only 5 miles away. :W :W

A while back I kept ducks, geese, goats, dogs, cats, guinea fowl (they frighten cars), and 22 (yes 22!), peafowl. All at the same time. My neighbours didn't mind and they were only 300 yards up the road :)


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Re: Mallory Park closes

Post by swoakes » Mon Sep 30, 2013 7:50 pm

This sign previously posted says it all IMHO

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Re: Mallory Park closes

Post by PeterSE6a » Mon Sep 30, 2013 8:05 pm

Bloody sad day , been there to spectate a few times and it's great circuit for that , as has been said you move near a race circuit you should expect some noise!!, same thing has happened to my local circuit (Croft near Darlington) with more noise restrictions as new neighbours didn't like the noise! thankfully it's still open.


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Re: Mallory Park closes

Post by scimjim » Fri Oct 11, 2013 8:32 pm

Copied from the Leicestershire Mercury (their page is full of annoying ads)

The parent company which placed the operators of Mallory Park racing circuit into administration has set up a new firm in the hope of running the track.

The future of the venue was thrown into doubt last month when British Automobile Racing Club (BARC) placed Mallory Park (Motorsport) Ltd (MPML) into the hands of administrators.

The move followed a successful prosecution of MPML by Hinckley and Bosworth Borough Council for breaches of a 1985 agreement, limiting noisy track days to 92 each year.

BARC said the enforcement of the restrictions made it impossible to run the track without making a loss, so administrators were called in.

It has now emerged BARC formed a company called Mallory Park Motor Racing Ltd, three days after MPML was put into administration.

Villagers in Kirkby Mallory, who have complained about breaches of the 1985 terms, now fear the new company could start running the track without restrictions if it was able to buy MPML.

A council spokesman said: "The 1985 agreement applies to MPML, not the circuit. "In that sense the residents would be correct. "However, there are discussions going on with the administrators about how the council will regulate any new operator. "In the worst case, the council would serve the 1985 notice on the new operator but there might be a short breathing space. "We want racing to continue within limits acceptable to the villagers."

A villager, who did not wish to be named, said: "We fear BARC has simply dropped the old company to get out of the restrictions which applied to it and has set up a new one to take over.

"I think it seems like an underhanded way of doing things."

Mark Jones, BARC chief operating officer, who is listed as the sole director of the newly-formed company, said: "We have always been clear we want to continue running Mallory Park.

"It's normal to have a shell company set up ready and this is what we have done. "The administrators know we are here but there is no deal on the table. "We are happy to have an agreement with the council but not the old one."

Mr Jones said he could not comment on any debt owed by MPML when it was placed into administration.

The company had been fined £2,500 and ordered to pay costs of £23,000 to the council following the noise breach case.

Yesterday, administrator Ian Robert, of Kingston Smith Partners, said MPML staff were still working and being paid.

He said: "BARC is one of a number of interested parties in the sale of Mallory Park (Motorsport) Limited we are in discussions with. "Negotiations with the landlord and the council are progressing and the signs are encouraging. "However, we are not there yet with regard to a sale."

All track events are being reviewed on a week-by-week basis and non track events will proceed as planned.


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