Experience

Industry

Hospitality, Voluntary Administration

Appointment Type

Voluntary Administration

The Situation

We were appointed voluntary administrators to an iconic country hotel in northern South Australia

The Solution

Given the iconic name of the hotel, we initially maintained the trading of the hotel business whilst all restructuring options for the business could be evaluated. Given the appointment was during the quiet tourist season, after a short time, we ceased trading the hotel as profitable trading could not be maintained and focussed our efforts on selling the freehold and leasehold aspects of the business.

The Outcome

After a short campaign, we were successful in negotiating a sale of the freehold and leasehold business, ensuring that a significant return was paid to the secured creditors and ensuring the jobs and services to the local community were preserved .