Jobs at a hotel, leisure club and restaurant near Grantham have been saved after administrators successfully sold it to a hotel group.
New Barn Hotel Limited, owner of The Olde Larne Hotel in Marston near Grantham, entered administration on August 27, 2019 after the business suffered from acute cashflow pressures. Around 100 employees faced uncertainty about the future of their jobs at the time.
Diana Frangou and Adrian Allen of RSM Restructuring Advisory LLP were appointed as joint administrators, who continued to trade the Olde Barn Hotel, which has 103 bedrooms together with a leisure club, restaurant and function facilities, whilst seeking a buyer for the hotel and business as a going concern.
Staff continued to work for the company whilst it was in administration, but two directors were previously made redundant.
Administrators from RSM Restructuring Advisory have since completed the sale of The Olde Barn Hotel to Shepherd Cox Hotels (Grantham) Limited, part of the Shepherd Cox Hotel Group.
Shepherd Cox Hotel Group owns and operates 20 hotels across the UK under brands such as Holiday Inn, Best Western, Travelodge and Accor. As the new owner they will be honouring all room and function bookings on the same basis as agreed between the company and the hotel’s guests.
Adrian Allen, a partner at RSM Restructuring Advisory LLP and one of the joint administrators said: “I’m delighted that we were able to complete this deal which minimises creditor losses, secures the ongoing employment of the hotel staff and honours all room and function booking for existing customers.”
The sale was facilitated by commercial real estate firm Avison Young. James Williamson, Director at Avison Young, added: “We are pleased to have completed the sale of the hotel, following strong interest in the asset, despite the wider market uncertainty during this period.”