There's been a couple of WalesOnline reports of other signature living hotel going in to administration. Does this mean possible bad news for the Coal Exchange to come?
https://www.walesonline.co.uk/news/wale ... e-18149296Two hotels in the same group as Cardiff's Coal Exchange have been put into administration. Signature Living's flagship hotel - the Shankly, in Liverpool - appointed joint administrators on April 16.
On Friday, administrators confirmed they had been called in by another Signature hotel - this time Bedford Hotel Limited, which trades as the George Best Hotel in Belfast. The Irish 'luxury' hotel was set to open in the summer.
In addition, another company linked to boss Lawrence Kenwright, the Signature Living Hotel Limited (The Company), appointed administrators on April 21. The Company holds various freehold and leasehold interests of the wider Signature Living Group.
On April 16, Signature Victoria Mill Limited, which owns the Victoria Mill residential development, a prominent six-storey former textile mill in the heart of the Manchester City regeneration area, also went into administration.
Investors in the Exchange Hotel in Cardiff are worried about what it might mean for the hotel. They have already spoken out about how they've been left owed thousands by Signature Living.
Earlier this year, Cardiff Council agreed to hand Signature Living a huge loan - reportedly worth £2m - to help with the restoration of the Coal Exchange.
Signature Living Hotel Limited was the sole shareholder in Signature Living Coal Exchange Limited until March 20, 2020. According to Companies House information, the shareholdings in the Coal Exchange were transferred to a new company called UK Accommodation Group Limited on this date. This company is also owned by Lawrence Kenwright, together with his wife Katie Kenwright.
Referring to the Shankly Hotel, Signature Living said: "Due to Covid-19 and government guidelines the Shankly Hotel ceased trading with immediate effect.
"We have been left with no option but to place the property subsidiary of the hotel into administration. The operational trading company for the Shankly Hotel remains unaffected as does the wider Signature Living group.
“We are all facing unprecedented times and the impact of this pandemic on our business has forced us to make some immediate and difficult decisions."
FRP Advisory Trading Limited is managing the administration of Signature Victoria Mill Limited, while financial advisors from Duff & Phelps are managing the administration of the other three. This is what Duff & Phelps said about all three hotels:
Shankly Hotel
"The hospitality industry as a whole has seen increased pressures in recent years and has now been instantly hit incredibly hard by the COVID-19 pandemic.
"As a result, the Shankly is temporarily closed. Management’s expectation is that once the lockdown is lifted trading will continue as normal.”
Bedford Hotel Limited
“The renovation of the hotel is in the latter stages of completion and is due to be launched later this year.
"In order to protect its investment and provide a platform from which the hotel can be completed, Lyell Trading Limited have taken steps to appoint the joint administrators.
“We recognise the value of the George Best Hotel as a finished development and trading hotel. In so far as it is possible, advance bookings and reservations remain unaffected.
"We will be exploring all options with the current funders to maximise its value and ultimately the return to creditors.
“Like Signature Shankly Limited, we are aware that there are a number of bedroom investors that have paid deposits, we will be contacting all investors at the earliest opportunity to confirm our appointment and gather further information.”
Signature Living Hotel Limited (The Company)
“The steps taken by Henslow Trading Limited to protect its investment in the Signature Shankly Limited has necessitated a need to appoint the joint administrators to protect the freehold interest in Millennium House (the Shankly Hotel building).
“The trading operations of the Signature Living Group are unaffected by the various administrations and we understand that all trading will recommence at the earliest opportunity.“
The original Shankly administration move came after an application from a creditor firm, Henslow Trading Limited.