Sketchley Grange Hotel Limited (01707898): administration
- Status
- Administration ended
- Administration began
- 2012-12-17
- Administrators
- Adrian Peter Berry, Matthew James Cowlishaw
- Administrators' firm
- Deloitte
- Incorporated
- 1983-03-21
- Location
- Birmingham
- Industry
- 55100 Hotels and similar accommodation
Why it went into administration
- HMRC / tax arrears
- Creditor pressure / legal action
From the administrators' statement
In 2008, the Directors of the Company started a significant capital project to extend the hotel by a further 43 bedrooms, effectively doubling its size, and to further develop the leisure facilities and function rooms The pian was to re-position the 4 star hotel to appeal to a wider range of corporate and leisure customers
The Company obtained additional funding from the Bank to finance the project The works were due to be completed in 2009, however, the Company encountered various significant delays arising from the liquidation of the developer, FE Downes, a related company As a result, the project was only recently completed The disruption to the hotel arising from the delay to the extension, combined with a downturn in the prevailing economic conditions, resulted ina poor trading performance and build up of creditor arrears (including burld creditors, trade creditors, payroll and Crown liabilities)
To help support the Company’s cash flow position and to allow the creditor position to regularise the Bank agreed to suspend both capital and interest payments on their loans and interest was being rolled up The Company has made no interest or capital repayments on its facilities since June 2011
Administrators' statement of proposals (2013-02-14) · Companies House register