Folio Hotels out of administration and under new ownership
Folio Hotels has emerged from administration saving 1,200 jobs after a management buy-out, Caterersearch can confirm.
The deal to save 18 Folio hotels has seen the creation of a new holding company, Mulbourn Limited, which is jointly owned by Folio's hotel landlords, management team and private equity.
Folio's new management team will be led by managing director Matthew Welbourn and finance director Alan Murray, who previously held similar roles at Folio.
Thirteen senior managers have also taken a stake in the new company but founders Nicolas Crawley and Martyn Levitt are no longer involved with the enterprise.
Welbourn said the move was the "start of a positive new chapter for the former Folio Hotels".
"We have reached an agreement over the cream of the properties in the portfolio. They are in great locations and have recently been refurbished at a cost of £35m.
"There is no doubt that trading conditions will be tough over the next few months however we believe we are well poised with an excellent product to combat the current downturn in the economy", said Welbourn.
Another thirteen hotels are to be removed from Folio's collection as part of the rescue package and managed by Bespoke Hotels.
Hotels remaining under the Folio banner include: Etrop Grange, near Manchester Airport; Harpenden House, Hertfordshire; Harte & Garter, Windsor; Richmond Gate and Richmond Hill hotels, Richmond-Upon-Thames and the Caledonian hotel Oban.
The deal was handled by BTG McInnes Corporate Finance, solicitors Fladgate and administrator MCR.
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By Gemma Sharkey
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