British leisure and entertainment group Rank has confirmed the sale of its entire UK holiday business, including Butlins.

The buyer is a consortium led by caravan operator Bourne Leisure, which is paying £650m in cash plus a further sum of up to £50m.

This is dependent on the performance of Butlins holiday camps over the next two years.

The price exceeds expectations of about £500m for the UK holiday brands, which also include Warner, Oasis and Haven.

Streamlining

Rank has been undergoing a restructuring aimed at reducing debts running at more than £1bn.

Earlier this month, the group revealed pre-tax half-year losses of £142.5m, having over the past year sold its Odeon cinema chain, Pinewood film studios, its Universal Studios interests, its nightclubs and the Tom Cobleigh pub chain.

The results were hit by one-off costs totalling £184.6m, including charges relating to the sale of its 50% interest in Universal Studios Escape in Florida, the Tom Cobleigh sale and also the costs of reshaping its American Deluxe video duplication business.

Rank is now focused on its gaming operations, including Mecca bingo halls, the Hard Rock Café chain and the Deluxe video operation.