The owner of a Scouting and leisure complex with Olympic dreams has gone into administration.

The centre at Buckmore Park, Chatham, once used by young people from across the county, was built with more than £12million of public money but has been shut for nearly five years after two Scouting companies set up to manage the project went bust.

The complex on a 260-acre site had been earmarked as a possible 2012 Olympic Games training camp - but it is now rundown and needs a lot of money spent on it. However, the Scouts, who have a long lease on the site, still use part of it for camping.

A dispute between the owner Avondale South East and the Scouts has led to stalemate. Legal wrangles have also stalled progress.

In the latest twist, Lloyds TSB bankers have called in KPMG administrators to sort out the financial affairs of Avondale South East. This company was set up by Avondale Environmental Services, of Fort Horsted, Chatham, when the site was bought from Rochester Bridge Wardens for £4.8million.

A KPMG spokesman said: "Joint administrators have been appointed to effect the realisation of the Buckmore Park property to repay the bank."

Businessman Toby Atkinson has pledged to help the Scouts buy the site if the price is right. "We will assist the Scouts in buying the site if the administrators are selling it at market price," he said.

John Holder, chairman of Buckmore Park trustees and the Medway Towns Scout Council, added: "As far as the Scouts are concerned, it’s business as usual. We have a long lease on Buckmore Park and this doesn’t change our position. We will want to work closely with any new owner."

But Avondale has not given up the fight to hold on to Buckmore Park. A company source said it was trying to resolve a number of issues and was working with the administrators "to achieve the outcome that everybody wants".

Meanwhile, John Surtees, the former world champion owner of Buckmore Park Kart Circuit, which has reported good business, is watching developments. His company is a tenant but would like to buy the freehold of the circuit site and expand it.

Mr Surtees said: "I never cease to be amazed at what happens at Buckmore Park. It’s a local tragedy as far as I am concerned."