A developer transforming Hitler’s holiday village has gone bust just weeks after the retreat was given ‘resort’ status by the German government.
Envisioned as Hitler’s answer to Butlins, the Prora beach resort on Rügen island was built between 1936 and 1939.
But the outbreak of the Second World War stopped construction and the eight accommodation blocks were left abandoned, along with a theatre and cinema.
A developer transforming Hitler’s Prora beach resort (pictured) has gone bust just weeks after the retreat was given ‘resort’ status
Developers acquired part of the crumbling resort in 2012 and started transforming it into luxury accommodation, reportedly completing and selling 90% of the apartments.
But the developer, Wohnen in Prora Vermögensverwaltung GmbH, has now filed for bankruptcy, leaving the future of the project in doubt.
Philipp Hacklaender, who has been appointed administrator by the court in Berlin, said the developers had been hit by a number of unforeseen costs.
He said: ‘The debtor has bought, redeveloped and sold the apartments in Block One in Prora.
‘Unexpected problems came up, as the structure of the building was not sound, so the debtor had to tear down and rebuilt significant parts, observing the protection of monuments rules.
‘That seems to have been very costly and time-consuming, so that the debtor could not hand over the apartments to buyers in time.’
Only last month, local government was so confident in Prora’s future that they awarded it ‘resort’ status, allowing it to charge tourist taxes.
The beach resort (pictured), on the island of Rügen, Germany, was built as a Nazi holiday spot between 1936 and 1939
It was in recognition of the ‘rapid tourist development’ there, said Harry Glawe, the region’s Minister of Economic Affairs.
Mayor Karsten Schneider even told the local Ostsee Zeitung newspaper that there would be Euro 500m (£450m) invested in the area to make it more of a destination.
But now the development faces an uncertain future.
‘The debtor, the main creditor and I are trying to find a solution to the financial problems,’ said Dr Hacklaender.
‘For the time being, I am quietly confident we can get the building and outside facilities finished with fresh money. Negotiations on this are ongoing.’
The outbreak of the Second World War in 1939 stopped construction and the eight accommodation blocks were left abandoned
The resort, part of Hitler’s Strength Through Joy initiative, was acquired by developers in 2012
Prora was part of Hitler’s Strength Through Joy initiative, which promoted the advantages of Nazism to the people of Germany.
Robert Ley, head of the German Labour Front – Strength Through Joy’s parent organisation – imagined Prora as a Nazi version of Butlins, providing affordable holidays to the average worker.
Hitler himself took an interest in the project, demanding the resort be the ‘most mighty and large one to ever have existed’ and have a festival hall big enough for 20,000 guests.
After the war, Prora was used as a base by the Soviets and, later, the East German army.
Mr Glawe and Mayor Schneider did not respond to requests for comment.