Begbies Traynor Group appointed administrator of Suite Hospitality

Source: Consultancy 2020-06-30

A hotel chain’s 100 staff are facing uncertainty after it collapsed into administration. Begbies Traynor will now seek a way to transfer operations to new ownership in order to preserve as many jobs as possible.

Businesses centring on travel and hospitality have endured a nightmare start to 2020. As the UK entered lock-down to prevent the spread of coronavirus, hotels were ordered to close their doors to new guests – leaving many already struggling companies with no choice but to appoint administrators. Earlier in June, under the strain of lock-down the Croydon Park Hotel appointed administrators from KPMG thanks to the massive downturn it had seen in trade in the last year.

Now, hospitality operator Suite Hospitality has become the latest hotel chain to follow suit. The company employs 110 staff, most of whom are currently being furloughed, and operated three hotels, including the Buckerell Lodge Hotel, on Topsham Road, Exeter, as well as the Harte and Garter Hotel, in Windsor and the Makeney Hall Hotel , Belper, in the Peak District, under leases.

The hotel chain had a disappointing year in 2019, and had been in negotiations with major creditors and landlords to find a way for the company to continue – something which the Covid-19 crisis only exacerbated. While the chain remained in financial jeopardy, two of its larger landlords would not agree to adequate terms for Suite Hospitality to survive, and so a decision was taken by the board that the company would have to proceed to administration.

Begbies Traynor was subsequently installed to oversee the process. Ian Walker and Julie Palmer will now try to find a way to transfer operations at as many of the company’s trading sites as possible in order to retain employment for staff at those establishments.

Walker commented, “We are working very hard to transfer the business to new owners and preserve as many jobs as possible at the three hotels, including Exeter’s Buckerell Lodge.”

Suite Hospitality

Begbies Traynor

Begbies Traynor Group appointed administrator of Suite Hospitality

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