Selina Hospitality PLC (13931732): administration
- Status
- Administration ended
- Administration began
- 2024-07-22
- Administrators' firm
- FTI Consulting
- Incorporated
- 2019-03-26
- Location
- London
- Industry
- 64209 Activities of other holding companies n.e.c.
Why it went into administration
- COVID-19
- Cash flow / liquidity pressure
- Property / lease costs
- Rising interest rates
From the administrators' statement
Following the Covid-19 pandemic and the impact on occupancy, the Company and its Group were unable to reach their growth aspirations and suffered a significant deterioration in value.
Throughout 2023 and 2024, the Group struggled to raise sufficient capital to deliver a successful turnaround. Increased interest rates and weaker than anticipated trading performance further increased challenges in raising capital, with the Company failing to repay a USSSO million loan due back to IDB Invest in July 2024.
Several attempts were made to find additional capital to support the ongoing trading of the Group. During the period leading up to the Administration, this included the Company disposing of c.43% of the equity in its Australian business. However, this was insufficient to address the Group’s significant liquidity issues.
Administrators' statement of proposals (2024-09-11) · Companies House register