The hotels, based in Bicester, Darlington, Hartlepool, Manchester, Sedgefield and Chesterfield, employ around 100 employees. On appointment, there were insufficient funds to continue to trade the hotels and therefore, regrettably, the staff at the majority of the hotels have been made redundant. Five of the six hotels were already closed on appointment.
The business was placed into administration following a court application by a number of investors. Investors had bought hotel rooms that included a guaranteed quarterly rent on the rooms they had purchased, as well as a resale value of 110 per cent of the original purchase price.
Simon Bonney, partner at Quantuma, said: “I can confirm that myself and Carl Jackson have been named joint administrators of over six companies following Court Orders for the appointment of Administration. We are exploring options in relation to the sale of hotels in order to try and secure the re-employment of staff and honour ongoing bookings. We are also investigating what happened to the significant funds received by each company in relation to the sale of hotel room to investors where the funds received significantly exceeded the purchase price of the hotels by the Shepherd Cox Group. If those funds had remained in each company then short term trading would have been a viable option.”
ENDS
INFORMATION:
For information the staff of Bicester, Darlington, Hartlepool, Manchester, and Chesterfield have been made redundant. The hotel at Sedgefield is not operated by the Company in administration and therefore the decision with regard to the future of the employees is for a third party.
Notes to Editors
Quantuma LLP is a leading business advisory firm which works with businesses at key milestones, delivering partner led solutions to help clients take advantage of opportunities and overcome a range of operational and financial challenges, enabling them to achieve their business objectives and ambitions. The business has 18 offices, including 15 in the UK, two international offices in Cyprus (Nicosia and Paphos) and one in Mauritius
