A management buyout has saved 1,200 jobs at Folio Hotels, the UK hotel chain which went into administration last month.
The group, which operated 36 hotels across the UK and a turnover of £70m, blamed high rents and an expensive refurbishment programme for its difficulties. It also said it was burdened with big rents that were negotiated at the height of the market. Today a group of former Folio managers has created a new company, Mulbourn Limited, funded by landlords, the management team and private equity.
The new company will continue to trade under the Folio Hotels banner.
Hotels involved in the deal include Harte & Garter Hotel, Windsor, and Richmond Gate and Richmond Hill Hotels in south-west London.
On New Year’s Eve the administrators MCR said that hotel group Bespoke was taking on 13 of Folio’s properties, running them on management contracts rather than longterm leases.
Today’s deal ties up the remaining estate of 23 hotels.