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 charge of a group of four companies that owned six hotels. By collaborating closely with all stakeholders, the administrator implemented a strategy to trade the hotels for nine months. This approach allowed for a comprehensive marketing campaign aimed at facilitating the sale of the hotels as going concerns. After six months of trading, successful bids were secured, and negotiations for the sale were completed over the following three months. The process included an innovative tax structure and share sale that resulted in tax savings of approximately £1 million for the shareholders. Ultimately, two hotels were sold as going concerns for around £17 million, while the remaining hotels and assets were returned to the shareholders. All creditors were repaid in full, and the jobs of the employees were secured, ensuring the survival of the group.