Travel and leisure industry - case study
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Travel and leisure industry - case study
Trading administration of 6 Hotels, resulting in the sale of 2 hotels as a going concern and return of remaining trading assets to the shareholder, whilst securing full repayment of all creditors and the survival of the Group
- Sector – Hotel and Leisure
- Debt - £17m
- Number of employees – approx. 100+
Situation
Unexpected HMRC winding up petition forced hotel group into insolvency on short notice.
Approach
Appointed Administrator of a Group of 4 companies that owned the hotels and, by working closely with all stakeholders, quickly stabilised the business, assessed funding requirements and clearly set out options.
Implemented a strategy to trade the 6 hotels for 9 months to allow a full reach marketing campaign and facilitate a sale of the hotels as a going concern.
Successful bids were secured and the sales negotiated after 6 months.
Completion over 3 months included an innovative tax structure and share sale that secured tax savings of c£1m for the shareholders.
Exited Administration by way of CVA.
Impact
2 hotels were sold as a going concern for c£17m, with the remaining hotels and assets being returned to the shareholders.
Creditors repaid in full and all jobs secured.
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