Strathmore hotel closes after group’s saleDec 02, 2013
A total 155 staff at the Luton hotel and those in Swindon and Gatwick are to be made redundant.
Country house hotel Flitwick Manor, also part of the Menzies group, is among the 12 acquired by international property and investment group Topland.
Agents Christie + Co have been marketing the group ahead of KPMG administrators being appointed last Friday (November 29).
Rob Croxen, partner at KPMG and joint administrator, said: “Following our appointment in May 2013 as administrators to the non-trading parent companies of Menzies Hotels Group, we have worked closely with stakeholders to secure the best possible outcome for creditors.
“After reviewing a number of options, it became clear that a pre-pack sale of the business and the freehold properties would provide the greatest return to creditors, while also preserving the majority of jobs across the business.
“Unfortunately, however, the terms of the three leasehold properties proved to be unattractive to potential buyers. We will be assisting those affected employees in claiming redundancy payments from the Redundancy Payments Office.”
Topland, the property group owned by billionaire brothers Sol and Eddie Zakay, has purchased 12 of the regional operator’s 15 hotels and its head office in Derby for between £80 million and £85 million.
It has appointed independent operator Bespoke Hotelsto run Flitwick Manor and the other 11 freehold hotels in tandem with Vision Hospitality Asset Management, saving 1,130 jobs.
Topland managing director Mark Kingston said the deal was a sign of the company’s confidence in the recovery potential of the regional hotel market after a tough few years.