The business and assets of a national hotel chain has been sold out of administration, securing the ongoing employment of 1,130 staff.
Menzies Hotel Group, which operated 15 hotels across the UK, entered administration with Rob Croxen and Jane Moriarty of KPMG appointed as joint administrators to Menzies Hotels Operating Limited, and Menzies Hotels Limited on Friday 29th November.
Following a period of marketing by Christie & Co in the months prior to appointment, administrators were able to secure an immediate sale of the businesses and assets of 12 Menzies hotels to Topland Group, an international property and investment group.
However, three hotels operating under shorter-term lease agreements located in Luton, Gatwick and Swindon will close, with a total of 155 employees across the three sites being made redundant.
Croxen, partner and KPMG, said: “Following our appointment in May 2013 as administrators to the non-trading parent companies Menzies Hotel Group, we have worked closely with stakeholders to secure the best possible outcome for creditors.
“After reviewing a number of options, it became clear that a pre-pack sale of the business and the freehold properties would provide the greatest return to creditors, while also preserving the majorty of jobs across the business.
“Unfortunately, however, the terms of the three leasehold properties proved to be unattractive to potential buyers. We will be assisting those affected employees in claiming redundancy payments from the Redundancy Payments Office.”
The 12 hotels that have transferred to Topland Group are: Aberdeen Airport (Dyce), Glasgow, Cambridge, Birmingham City (Strathallan), London Chigwell (Prince Regent), Stratford Upon Avon (Welcombe), Birmingham (Stourport Manor), Woburn (Flitwick Manor), Irvine, Bournemouth (Carlton), Derby (Mickleover Court), Bournemouth (East Cliff Court).