The business and assets of 12 hotels and the operating platform of the Menzies Hotels Group have been sold to the Topland Group.
Rob Croxen and Jane Moriarty, restructuring partners at KPMG, were appointed joint administrators to the Group’s operating company, Menzies Hotels Operating Limited, and Menzies Hotels Limited on Friday 29th November 2013. The Group, which has its head office in Derby, owns and operates 15 hotels around the UK.
Following a period of marketing by Christie & Co in the months prior to appointment, the administrators were able to secure an immediate sale of the businesses and assets to Topland Group, the international property and investment group. The deal successfully secures the ongoing employment of 1,130 employees, and sees 12 freehold hotels transferred to the purchaser.
However, three hotels operating under shorter-term lease agreements located in Luton, Gatwick and Swindon will close, with a total of 155 employees across the three sites being made redundant.
Rob Croxen, partner at KPMG and joint administrator, commented: “Following our appointment in May 2013 as administrators to the non-trading parent companies of Menzies Hotels Group, we have worked closely with stakeholders to secure the best possible outcome for creditors. After reviewing a number of options, it became clear that a pre-pack sale of the business and the freehold properties would provide the greatest return to creditors, while also preserving the majority of jobs across the business.
“Unfortunately, however, the terms of the three leasehold properties proved to be unattractive to potential buyers. We will be assisting those affected employees in claiming redundancy payments from the Redundancy Payments Office.”
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The 12 hotels that have transferred to Topland Group are:
Aberdeen Airport (Dyce), Glasgow, Cambridge, Birmingham City (Strathallan), London Chigwell (Prince Regent), Stratford Upon Avon (Welcombe), Birmingham (Stourport Manor), Woburn (Flitwick Manor), Irvine, Bournemouth (Carlton), Derby (Mickleover Court), Bournemouth (East Cliff Court).
Rob Croxen and David Crawshaw from KPMG were appointed to Cordial Hotels Limited and Cordial Hotels Acquisitions Limited, the Group’s non-trading holding companies, on 20th May 2013.
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