Sale of Hotel Solutions to Housekeeping Solutions saves 1,100 jobs

02 April 2012 by
Sale of Hotel Solutions to Housekeeping Solutions saves 1,100 jobs

Hotel Solutions London, which went into administration last week, has been sold to Housekeeping Solutions, run by a director of the original company.

Based in Wembley, Middlesex, the hotel servicing, housekeeping and catering business held contracts with hotels and shops delivering a range of cleaning, front-of-house and catering services. The contracts have been sold as part of the deal.

The employment of all 1,100 staff will be transferred to the new company.

Although the business was successful in obtaining new contracts, it had built up substantial trading losses which resulted in large debts with HM Revenues & Customs as well as other creditors. Entering administration was seen as the best means of saving the company and selling it as a going concern.

Jason Baker of the administrators, FRP Advisory, said: "We are pleased that the sale to Housekeeping Solutions helped secure 1,100 jobs and safeguarded a continued service to its customers. Due to the pressure of the month-end payroll, we had a very limited time to achieve a sale. In our view this is an exceptional result for the business, its customers and its employees because the alternative would have been a shutdown and closure, almost certainly this week."

Meanwhile, Pearl Palihawadana, previously with Hotel Solutions London and now with Housekeeping Solutions said she was delighted to have secured a future for the business. "We are now making arrangements to pay the wages today, although unfortunately some amounts may not be received by employees until tomorrow morning."

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By Janet Harmer

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