By Jessica Holman, Associate Director

It was finally announced in early 2025 that the planned £2.6bn ‘Dartford Disneyland’ theme park would be shelved. Originally named London Paramount Entertainment Resort and announced in 2012, it faced a catalogue of setbacks, including criticism in 2014 when the district council sent nine employees on a £15,000 taxpayer funded ‘fact-finding’ trip to Florida theme parks. Then, in 2017 Paramount pulled out of the deal, and in March 2023, the company behind the park, London Resort Company Holdings Limited (LRCH), went into administration. LRCH had already racked up £100mn in debts and was subsequently sued by Paramount for breaching the terms of their agreement.

Investor due diligence is a critical process that should be conducted before any significant investment is made. In the case of the ‘Dartford Disneyland’ scheme, thorough due diligence would have been crucial to avoid the pitfalls and eventual legal battles that have plagued the project.

Assessing the Financial Health of LRCH:

Due diligence would have involved a deep dive into the financial status of the London Resort Company Holdings (LRCH), the company behind the project. This would have included obtaining a credit report, analysing accounts and identifying any red flags which would have signaled potential risks to investors.

Assessing the Management Team:

Due diligence should have included a thorough evaluation of the experience, expertise and track record of LRCH’s management team. Their prior involvement in projects of this type, history of managing large amounts of funding and working with high-profile investors such as Paramount would have been analysed.

Legal and Regulatory Issues:

Investors should also have assessed the legal and regulatory landscape surrounding the project, including planning permissions, environmental regulations and any potential legal challenges.

Conducting investor due diligence on the ‘Dartford Disneyland’ case would have been essential to uncover the significant financial instability, management issues, operational challenges and potential risks associated with the project. This process could have helped investors make more informed decisions and potentially avoid the financial losses and legal entanglements that have since transpired. The case serves as a stark reminder of the importance of rigorous due diligence for any large-scale investment project.

If you would like to set up a meeting to discuss your due diligence needs contact us at info@garancie.com.