BIDDERS LINE UP TO TAKE OVER RESORT

SPECULATION is mounting that Resort Hotels, which earlier this month reported record losses of £71m, will shortly be taken over by a rival hotel group.

Investigations by Caterer have thrown up four possible bidders: Jarvis Hotels, Macdonald Hotels, Oriel Leisure and Regal Hotels - though it is thought the last two may already have been discounted by Resort.

Resort chairman David Tonkinson would not be drawn on specific companies, but admitted: "We are negotiating with other parties, and have been for a while. We are seeking the best deal for the company."

It is believed he is also looking at the option of bringing in an outside company to manage the group.

None of the companies rumoured to be interested in Resort would comment, although all four are known to be on the expansion trail.

Jarvis Hotels chairman John Jarvis is understood to have been working flat-out on possible acquisitions as a prelude to a stock market flotation, and admitted this week to "looking at everything that moves".

Macdonald Hotels, meanwhile, has close links with the Bank of Scotland - one of Resort's bankers - having recently been appointed by the bank to manage four properties taken back from Resort (Caterer, 10 March).

A takeover has formed part of the discussions Resort has been holding with its bankers and stockholders in an attempt to secure its future and stave off the threat of receivership.

Its shares were suspended last July pending scrutiny of "a number of financial and reporting issues" and it emerged last week that the Serious Fraud Office has been investigating the past management of the company for some time.

In a statement to shareholders at the weekend, Mr Tonkinson again called into question the actions of former managing director Robert Feld, suggesting that he had misled both the board and the company's bankers on a number of occasions.

But Mr Feld this week described the allegations as "a load of rubbish", saying the situation had been "completely mishandled" by non-executive directors who were "looking for scapegoats".

The company's most pressing problem, however, is the threat of losing its stock market quotation. As Caterer went to press, Resort had been given until today's extraordinary general meeting to submit firm proposals to the Stock Exchange.