Search
The Caterer

Menzies Hotels goes into administration

28 May 2013 by
Menzies Hotels goes into administration

Fifteen hotels within the Menzies Hotels portfolio are expected to go on the market after its parent company went into administration for the second time in two years.


A financial restructuring of the company took place following talks with its lender, the Lloyds Banking Group, and it was agreed that £7m would be invested in upgrading some of its four-star properties which include the Chequers at London Gatwick; Welcombe Hotel, Spa and Golf Club, Stratford-upon-Avon (pictured); and Flitwick Manor, Woburn. Its new core ethos was promoted as "You're in a good place".

However, it appears Menzies, which has its head office in Derby, defaulted on its £165m loan.

Rob Croxen of KPMG described the debt as "unsustainable" and said that a strategic review of the group will now take place.

"The appointment of administrators does not affect the hotels at an operational level so it is business as usual for the hotels, with bookings unaffected and no redundancies," he explained.

The group, which employs a total of 1,200 staff, was run by executive chairman Niall Geoghegan and chief executive Tim Penter.

Menzies Hotels undergoes a brand refresh >>

Menzies Hotels in management buyout after parent company goes into administration >>

The Caterer Breakfast Briefing Email

Start the working day with The Caterer’s free breakfast briefing email

Sign Up and manage your preferences below

Thank you

You have successfully signed up for the Caterer Breakfast Briefing Email and will hear from us soon!

Jacobs Media Group is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

The highest official awards for UK businesses since being established by royal warrant in 1965. Read more.