Irwin Mitchell’s Restructuring Team Advises On Job-Saving Deal
A Lake District hotel which went into administration earlier this year has been acquired by the Lake Merritt Group, securing 32 jobs.
Built in 1985, The Hydro Hotel, was bought by Squires Hotels in 2014 for almost £3.75m but struggled with cashflow issues following a £1.7m renovation project.
Phil Pierce and Paul Whitwam, partners at FRP Advisory, were appointed joint administrators in February this year.
The new deal has been brokered by Colliers International, who acted on behalf of FRP Advisory.
FRP Advisory was advised by Doug Robertson, Restructuring & Insolvency partner at Irwin Mitchell in Leeds. Philip Middleton and Sophie McKelvey from Irwin Mitchell also worked on the deal.
The deal secures the jobs of the Hydro Hotel’s 32 employees, and all bookings will be unaffected.
A Lake Merritt Group spokesman said: “The Hydro is an exciting addition to our fast-growing portfolio. We have identified significant opportunity for development within both the grounds and the hotel itself. We are confident our developments will reposition this great hotel within the strong Windermere leisure market.”
Mr Pierce said: “We worked closely with all parties to secure the sale of the Hydro Hotel, and the acquisition is the best possible outcome for everyone involved.
"Not only does it guarantee that people’s holidays, weddings and events can go ahead, but it also saves a significant number of local jobs.”