Gordon Hotels Limited (05652146): administration
- Status
- Administration ended
- Administration began
- 2024-03-04
- Administrators
- Janet Burt, Philip Joseph Dakin
- Administrators' firm
- Kroll
- Formerly
- Phco134 Limited
- Incorporated
- 2005-12-13
- Location
- London
- Industry
- 55100 Hotels and similar accommodation
Why it went into administration
- Cash flow / liquidity pressure
- COVID-19
- HMRC / tax arrears
- Weak consumer demand
- Rising costs / inflation
- Creditor pressure / legal action
From the administrators' statement
Given the on-going liquidity crisis facing the Company, Philip Dakin of Kroll was first formally engaged by the Company and Cynergy under an engagement letter dated 8 September 2023 to discuss and advise on potential options for the Company, and later under an engagement letter dated 14 September 2023 to provide oversight of management's cash flow forecasts and to provide recommendations to both the Company and Cynergy, in its capacity as secured creditor of the Company. The outcome of the options review led to Kroll being engaged to market the Hotel for sale on an accelerated basis.
Appointment
Despite extensive marketing and protracted negotiations with a potential purchaser over a period of several weeks, a sale of the business and/or certain assets was unable to be agreed. In absence of a transaction, the Directors sought independent legal advice as to whether the Company was considered insolvent on a cash flow basis.
Administrators' statement of proposals (2024-05-02) · Companies House register