Resort investors demand action
SHAREHOLDERS of the stricken Resort Hotels group have recommended to the board that Michael Brooker and Dennis Bingham of Oriel Leisure be brought in to run the company.
An action group of 142 shareholders has criticised plans by the board to sell the group and is now recommending the appointment of Oriel's executives to be followed by a rights issue raising about ú8m-ú10m of new funds.
John Bancroft, a former caterer and college lecturer who set up the action group at the end of December, declined to be drawn on specific details but confirmed a proposal had been put to the board.
It is understood the plan envisages Mr Brooker and Mr Bingham becoming managing director and finance director respectively at Resort, and handing over the running of Oriel to their operations and development director Andrew Parry.
Given that one Oriel-managed property, Randell's Hotel at Skipton, North Yorkshire, is already marketed by Resort as an "associate hotel", closer links between the two companies at a subsequent stage would appear likely.
The action group, which speaks for about 18% of Resort's shares, is supporting the plan to ensure Resort's financial restructuring does not mean existing shareholders losing most of their money, as seems likely if it is sold.
Mr Bancroft said he was convinced there would be sufficient loyalty from shareholders, staff and management to make a rights issue feasible.
For the present, however, disposal seems the likeliest option, with Jarvis Hotels and the Macdonald Hotels group still appearing the likeliest buyers (Caterer, 7 April).
