Three properties returned to Richardson Hotels by administrators

16 November 2018 by
Three properties returned to Richardson Hotels by administrators

Administrators have returned three properties to the Richardson hotel group, but the Abbey Sands hotel - formerly John Burton Race Restaurant with Rooms - remains under their control.

The Falmouth hotel, the Grand hotel in Torquay, and the Royal Beacon in Exmouth have been returned to the group, headed by hotelier Keith Richardson, following a successful CVA process.

Mark Boughey and Matthew Wild from RSM Restructuring Advisory LLP had been appointed in January when an unpaid tax bill threw the group into financial difficulties.

As a result two hotels, the 77-bedroom Fowey Hotel and the 58-bedroom Metropole hotel in Padstow, were sold to Harbour Hotels, raising £17.75m. The administrators confirmed that the sales allowed creditors to the two companies the hotels sat within to be paid in full.

Boughey said: "This was a complex administration, but we are delighted to have reached an outcome which has protected the position of creditors, secured the jobs of all staff and kept the hotels trading as usual for the benefit of guests."

The Abbey Sands hotel, which was rebranded following the departure of Burton Race shortly after the hotel fell into administration, continues to operate on a business as usual basis. The hotel is a separate company sitting under the Richardson brand and administrators continue to assess their options to provide the maximum return to creditors.

John Burton Race Restaurant with Rooms renamed the Abbey Sands hotel following chef's departure>>

Richardson hotels to exit administration on 1 October>>

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