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.
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