Portable hotel accommodation provider Snoozebox has called in the administrators after talks with its primary lender failed.
The company said that it was unable to continue as a going concern after discussions with SQN Asset Finance Income Fund concerning the debt it owes as well as its longer-term capital structure hit the rocks.
Snoozebox’s shares, which trade on the AIM market, have been suspended as a result of the news.
Jeremy Willmont and Neville Side of Moore Stephens have been appointed to oversee the firm.
In a statement, the business said: “The significant debt burden taken on by the company in 2014 has been one of the company’s largest challenges given the poor financial and operational position of the company when the directors commenced restructuring in early 2016. It is a challenge that the directors have sought to manage whilst aligning the company to a new strategy and being as transparent as possible with shareholders. However, the company has succumbed to the challenge. Given the significant progress the company has made with delivery of its new strategy since mid-2016, this outcome is clearly very disappointing for shareholders.”
Snoozebox has provided temporary hotels at sporting events such as the British Grand Prix and the Cheltenham Festival, it has also operated a semi-permanent 174-bedroom hostel with 58 bathrooms, aimed at school parties, at the Eden Project in Cornwall. Recently it won a semi-permanent contract to provide 80 rooms for workforce accommodation in a remote area of the country for an unnamed international company, starting in December.
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