Wroxall Abbey Estate Limited (04133415): administration
- Status
- Administration ended
- Administration began
- 2019-10-22
- Administrators
- Gareth Prince, Mark Malone
- Administrators' firm
- Begbies Traynor
- Formerly
- Wroxall Abbey Estates Limited
- Incorporated
- 2000-12-29
- Location
- Birmingham
- Industry
- 55100 Hotels and similar accommodation
Why it went into administration
- Creditor pressure / legal action
- HMRC / tax arrears
- Property / lease costs
- Funding withdrawn / unable to refinance
- Sustained trading losses
- Brexit
From the administrators' statement
The Company was set up in December 2000 to acquire a 100 year lease on Wroxall Abbey Estate with the purpose to convert the property into a full service country house hotel. The Company was initially funded entirely by private investors and the capital was used to finance the first phase of the overall development. This first phase was the conversion of the old carriage house, into a 3 star hotel “Wroxall Court’, which opened in 2002, with 22 bedrooms, bistro, bar and function facilities. In parallel with that development, the necessary remedial work was completed in the church, and services restarted in Wrens Chapel, (as it was then known).
The main development was the conversion of the original Manorhouse into a 48 bedroom country mansion hotel with restaurant, bar, meeting/function rooms, leisure club/indoor pool and Spa. Loan finance for this phase of development was provided by Royal Bank of Scotland (RBS). The conversion works were initially delayed with process of obtaining the requisite planning approvals and listed building consent. There were further delays when the main contractor for the works entered an insolvency process prior to the planned opening date. These delays were further compounded by additional remedial works that were required prior to completion, which also resulted in significant extra cost. The Company was left in a tight financial situation and relatively undercapitalised for the finishing details, operations build up and marketing launch spend.
After these initial setbacks trading began to progress well and in 2008 the Company received an unsolicited offer from an interested party in the range £12—13million. The economic crash at this time ended this sale prospect and the Company then suffered a torrid period of trading in the resulting recession. This adverse position was further complicated by the handover of the banking arrangements from RBS to Santander. Following three years of poor trading the Company agreed to buy out all bank debt. John Kent, the Company's main investor, provided the Company with the requisite loan finance to secure this buyout at the end of 2011. Mr Kent provided further loan finance for a £1 million program of improvement works and service enhancements. In addition, Mr Kent continued to provide significant funds to cover operating losses and working capital. The plan was to complete the redevelopment of
Administrators' statement of proposals (2020-01-02) · Companies House register