Financial Advisory
Forvismazars
Full Credential Description
In the travel and leisure industry, a hotel group faced an unexpected HMRC winding up petition that forced it into insolvency on short notice, jeopardizing its operations and the jobs of approximately 100 employees. The situation required immediate intervention to stabilize the business and assess its funding needs. The appointed administrator took decisive action by managing a group of four companies that owned six hotels. A strategic plan was implemented to trade the hotels for nine months, allowing for a comprehensive marketing campaign aimed at facilitating the sale of the hotels as a going concern. This approach involved close collaboration with all stakeholders to ensure a smooth transition and effective communication throughout the process. After six months of trading, successful bids were secured, leading to the negotiation of sales for two of the hotels for approximately £17 million. The completion of these sales over the following three months included an innovative tax structure and share sale, which resulted in tax savings of around £1 million for the shareholders. Ultimately, the administrator exited the administration process through a Company Voluntary Arrangement (CVA), ensuring that all creditors were repaid in full and that all jobs were secured, while also returning the remaining hotels and assets to the shareholders.