Dumfries and Galloway Council Seeks Recovery of Moat Brae Project Funds

Dumfries and Galloway Council has submitted a claim to recover the financial support it extended for the renovation of the mansion that served as an inspiration for JM Barrie’s Peter Pan. The council is among four secured creditors collectively seeking over £3.5m after Moat Brae in Dumfries ceased operations. A spokesperson verified that the council’s legal department had filed a claim concerning the funding it supplied, amounting to hundreds of thousands of pounds. Any sum the council obtains would be derived from the sale of assets, such as the property itself, after expenses. Moat Brae, the location where JM Barrie spent his childhood, was compelled to shut down in August, approximately five years after its establishment as a children’s literature center. Numerous organizations provided support for the initiative. A report by liquidators for the operating entity, Peter Pan Moat Brae Trust (PPMBT), identified four secured creditors possessing standard security over the premises. The BBC has reached out to all of them to ascertain their intentions regarding the recovery of the funds they contributed. The council verified that it had already presented a claim to the liquidators. Historic Environment Scotland (HES), another secured creditor, expressed that it was “saddened” by these events. HES allocated £500,000 in funding via grant programs in 2012, 2013, and 2017 for improvements to the stonework, roof, joinery, plasterwork, and heating. “We were not approached by the board of the trust about their recent issues, and would encourage early engagement with anyone facing similar issues,” HES stated. “However, a key specification of this funding, in line with other funders of the house, in relation to it being sold, or going into liquidation, was the recovery of funds during the lifetime of the contracts.” “We are working with the other project funders as well as the liquidator and very much hope a positive solution to the situation can be found.” The National Heritage Lottery Fund, a significant financial contributor to the project, indicated it was communicating with stakeholders and other funders but noted it would “not be appropriate” to provide additional comments. Creative Scotland, identified as the last secured creditor, provided an additional grant of £688,000 in 2015. “Conditions of our funding are that we would seek repayment if the business becomes insolvent,” a spokesperson confirmed. Concurrently, the council has also disclosed that it anticipates a prolonged process for any agreement to purchase the property. “The property is currently for sale by the liquidators, who are currently in discussion with interested parties following a closing date,” a spokesperson stated. “It is understood that this process is likely to continue until the end of the calendar year.”