Troubled heritage theme park Dreamland has been placed into administration after a tough opening year.

Relaunched on 19 June 2015 following an £18m (US$26m, €23.3m) restoration, the attraction in Margate, UK, failed to attract enough visitors to the park, with its operator Sands Heritage entering administration on 27 May.

Sands Heritage won the right to operate the 95-year-old attraction from park owners Thanet Council in November 2014.

The company entered into a voluntary debt plan last December when it was revealed Dreamland was in troubled waters, making a net loss of £5m (US$7.3m, €6.5m) – something the operator blamed on a ‘council blunder’.

One of the main failures, said Sands Heritage, was not being able to open the Scenic Railway on time, resulting in 50 per cent fewer visitors than had been anticipated over the summer season. In addition, the operator was forced to take over incomplete building works from the council, which resulted in the park closing for 17 days shortly after opening. Failure to open other rides, restore the menagerie cages and to complete important landscape work was also blamed.

“Sands Heritage would like to thank the management team for their unwavering commitment and hard work in the phenomenal development of Dreamland,” said company chair Nick Conington.

“Many people have worked tirelessly, despite truly challenging circumstances beyond their control, to make Dreamland one of the UK’s most talked about visitor attractions. This new phase for the park will enable it to thrive and continue to bring more and more visitors to Margate, the essential ingredient to further enable regeneration.”

The park will continue to operate as normal, with administrator Duff and Phelps now seeking a new operator. Duff and Phelps was also appointed administrator for another seaside theme park – Fantasy Island in Skegness – which went into administration in 2014 and was sold to Leisure Company the Mellors Group in March.