Darlington House Hotels Limited (00820495): administration
- Status
- In administration
- Administration began
- 2026-01-16
- Administrators
- Andrew Mctear, Joanna Watts
- Administrators' firm
- Begbies Traynor
- Incorporated
- 1964-09-23
- Location
- Norwich
- Industry
- 68209 Other letting and operating of own or leased real estate
Why it went into administration
- HMRC / tax arrears
- Creditor pressure / legal action
- Rising costs / inflation
- Weather / natural events
- Energy costs
- Cash flow / liquidity pressure
- Property / lease costs
- Sustained trading losses
From the administrators' statement
The Company was incorporated on 23 September 1964. It was originally set up to run hotels but from 1991 if became involved with property development, rentals and sales. It operated alongside associated companies Merrie Gardens Limited (‘MGL") and Westover Park Estate Limited ("WPEL") that are connected by way of common former director LWTS and shareholder BEPL, which ran the Prospect Business Centre in Cowes on the Isle of Wight.
The above companies were also connected with a further entity called Spithead Business Centre Limited which owned a freehold property in Sandown on the Isle of Wight containing approximately 50 units which it rented out on short and medium terms leases to various industrial and commercial tenants. This company faced various cashflow difficulties from 2011 onwards and administrators were appointed in February 2013. They continued to trade the business whilst attempting to sell the main asset of the company, this being the freehold property, on a going concern basis. Subsequently the company was placed into a company voluntary arrangement which took effect from 16 June 2014 however ultimately this failed and the company was once again placed into administration in 2019 and was then dissalved in 2022. The impact of these insolvency proceedings was felt by the Company, MGL, WPEL and BEPL however they were able to continue to trade, buying and developing property, although income from rentals was significantly reduced. This was impacted even further following the forced sale of BEPL’s Prospect Business Centre after a repayment demand was received from the mortgage provider.
The Company achieved a profit of £9,353 to the year ended 30 June 2022 based on recorded turnover of £26,225, However, in the year ended 30 June 2023 the Company's turnover reduced to £1,725 which led to a loss after tax of £16,604. This loss increased to £18,499 for the year ended 30 June 2024 despite turnover of £13,585. A new development project by BEPL commenced in 2018 with a view to creating various residential and commercial units within a Grade Hl listed building in Longton Stoke. Initial works on the commercial units had been completed in 2019 and various tenants moved in. Unfortunately, one of these tenants refused to pay rent and electricity costs. These monies were required in order to cover the mortgage interest payments however as rental income was being received from other tenants these payments could still be met. Matters worsened following a dispute with British Gas Trading Limited ("British Gas”) in respect of a contract for the supply of gas to the premises and various outstanding costs in relation to this which led to successive winding up petitions being served against BEPL. The first winding up petition in 2020 was set aside and the second was settled in full …
Administrators' statement of proposals (2026-03-18) · Companies House register