Three-star hotel enters administration

Fri, 10 Aug 2018 | ADMINISTRATION

Located in Ludlow, The Feathers Hotel has entered administration after suffering trading difficulties due to an outbreak of the legionnaires' disease in 2017 and an investigation by Public Health England (PHE).

Raj Mittal and Steve Stokes, partners at specialist business advisory firm, FRP Advisory LLP have been appointed as joint administrators. All affairs, business and property of the hotel will be managed by the joint administrators.

One of UK's largest specialists in the area of corporate restructuring, FRP Advisory LLP provide restructuring, corporate finance, debt advisory, forensic accounting and pensions services.

Joint administrator, Raj Mittal said: “The Feathers Hotel worked closely with Public Health England (PHE) in the West Midlands and Shropshire to enable a staged reopening of the business. Unfortunately, the impact of the initial closure and restricted trading conditions resulted in severe cash flow difficulties, which led to the company entering administration.

“We’re now working closely with the directors to evaluate all routes forward for the business over the coming weeks.”

During the investigation by PHE, the hotel closed for a short period of time and due to restrictions on trading, experienced severe cash flow difficulties.

The hotel will remain open for business while assessing its future options.

Legionnaires' disease is a form of atypical pneumonia caused by any type of legionella organism and is commonly found within water in the natural environment.

Combining a 17th century coaching inn with the facilities of a modern hotel, The Feathers Hotel includes four poster and luxury rooms with spa bath, a restaurant, a cafe bar with ancillary terrace and free Wi-Fi throughout the building.

The 40-bedroom hotel was put on the market in January for £2.65m.

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