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Richardson hotels to exit administration on 1 October

14 September 2018 by
Richardson hotels to exit administration on 1 October

Richardson hotels is expected to exit administration on 1 October following the sale of two hotels for £17.75m.

The hotel group will continue with a four-strong portfolio following the expected approval of two six-month Company Voluntary Agreements (CVA) by creditors.

Family-owned Richardson Hotels, headed by Keith Richardson (pictured), called in administrators in January when an unpaid tax bill threw the company into financial difficulties.

CVA documents for Fowey Hotel Ltd and Richardson Hotels Ltd, seen by The Caterer, outline proposals that will see all creditors, including HMRC, paid in full to the tune of £2.75m. Intra group loans have been excluded from the payments.

Richardson hotels will continue with the Falmouth hotel, the Grand hotel in Torquay, John Burton-Race in Torquay and the Royal Beacon in Exmouth.

The sale of the 77-bedroom Fowey Hotel and 58-bedroom Metropole hotel in Padstow was announced earlier this year. The properties have been purchased by Harbour Hotels for £5.75m and £12m respectively, above the joint £12m asking price.

Last month chef John Burton-Race announced his resignation as chef-patron of the eponymous John Burton-Race Restaurant with Rooms, with details of a possible rebranding yet to be revealed.

The refurbishment and rebranding of the property earlier this year was widely reported to have contributed to the group calling in administrators.

Sale of two properties expected to save Richardson Hotels group>>

John Burton-Race announces his resignation from eponymous restaurant with rooms>>

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