Provincial Hotels & Inns Limited (08766501): administration
- Status
- Administration ended
- Administration began
- 2021-06-21
- Administrators
- Patrick Alexander Lannagan, Conrad Alexander Pearson
- Administrators' firm
- Mazars
- Incorporated
- 2013-11-07
- Location
- Lydney
- Industry
- 55100 Hotels and similar accommodation
Why it went into administration
- COVID-19
- Sustained trading losses
From the administrators' statement
The Company was incorporated in November 2013 and was dormant until 2016. The Company was incorporated with Mr Mark Chambers as the sole director and shareholder. Kathryn Chambers joined the Company on 3 February 2016 and resigned on 26 May 2016. Mr Gore, Mr Mistry and Mr Terras joined the business as directors and shareholders on 26 May 2016 with Mr Terras later resigning on 2 September 2017 (leaving Mr Chambers, Mr Mistry and Mr Gore (together ‘the Directors’)). In the following paragraphs, the Administrators provide their understanding of the events which preceded the appointment of Administrators, following their discussions with the Directors.
In June 2016, the Company acquired a portfolio of nine public houses and two hotels from Mitchell's of Lancaster (Brewers) Ltd (‘Mitchells’), funded by a first ranking secured loan from HSBC Bank plc (‘HSBC’) and a second ranking secured loan from a private investor (Mr Norman). The Company’s security position is set out at section 7 of this report.
The Directors advise that the acquired estate was making a small profit but the property portfolio needed significant investment to improve business performance. The Directors’ agreed a business plan to turn the business around which involved the immediate disposal of two of the property assets (assessed by the Directors as non-essential to the performance of the portfolio) in order to release funding to enhance the rest of estate to a modernised combination of tenanted and managed hospitality venues, to repay some of the secured borrowing and to free up some additional working capital for the business if possible.
Administrators' statement of proposals (2021-08-24) · Companies House register