Warwickshire Hotels Limited (02844849): administration
- Status
- Administration ended
- Administration began
- 2016-03-14
- Administrators
- Mark Malone, William John Kelly
- Administrators' firm
- Begbies Traynor
- Incorporated
- 1993-08-10
- Location
- Birmingham
- Industry
- 55100 Hotels and similar accommodation
Why it went into administration
- Sustained trading losses
From the administrators' statement
This dectine is believed to have been the result of the significant number of new hotels opening in the near vicinity in addition to a number of new gastro pubs opening in the locality, together with the re-opening of two pubs in the Acocks Green area which had been closed for long periods The recession following the banking cnsis of 2008 also had a major adverse impact on trading
Following the decline in sales the Company was able to meet the wages and trade and expense creditors as and when they fell due but was unable to service the debt to the Bank, which was taken out to assist with the purchase of the hotel The terms of the loan were renegotiated with the Bank to allow the Company time to remedy the situation but tt was becoming clear to the directors that, although the position had been stabilised, the Company was generating insufficient profit to make any interest or loan repayments The directors and shareholders had already injected significant funds into the Company and were not in a position to inject further monies The Company, therefore, found itself in the position that it could not pay all of tt’s liabilities as and when they fell due
The Directors had appointed Colliers International to undertake a discrete marketing campaign which culminated in a firm offer for the business and assets On 4 November 2015, following an introduction from the Bank, the proposed administrators were contacted by David George, a shareholder of the Company, to review the current position given the insolvent nature of the business
Administrators' statement of proposals (2016-05-10) · Companies House register