Folio Hotels rescued from administration
Leanne Bell, 12 January 2009
Be the first to comment on this article
New company Mulbourn bails out 18 Folio properties
Folio Hotels appears to have been rescued from administration by a management buy-out.
New company Mulbourn plans to trade under the Folio Hotels brand and provide funding to 18 of the group's UK properties.
Mulbourn's management buy-out covers 18 of Folio Hotel's 36 properties and the deal is projected to save 1,200 jobs.
Folio Hotels went into administration in December due to "bad timing between the completion of an extensive refurbishment programme and the beginning of the recession together with rents that were negotiated at the high end of the market", according to Mulbourn director of sales Nick Greaves.
"The company's long term plans to ride the storm through renegotiated rents were dashed when talks failed to reach a satisfactory conclusion within the timescales available and as a result the management team had to call in the administrators," said Greaves.
The new company is forecasting turnover of £48m in its first year of trading.
"It is very much business as usual as we are keen to build our relationships with booking agents and travel management companies," said Greaves. "We will be honouring our existing bookings and will maintain commission at previous levels."
Mulbourn is led by managing director Matthew Welbourn and finance director Alan Murray, both of whom held similar posts at Folio Hotels, which was established in 2005.
To post comments please log in here
All Comments
There are currently no comments.
Jobs of the week
- Senior Sales Executive, VOS media
- 21k + 6k commission, Central London
- Events Manager, Youth Sport Trust
- £30 - £35k + Benefits, Central London
- EXPERIENTIAL DIRECTOR, J B Event Recruitment
- neg, Central London
- AV SUPERVISOR, Live Recruitment
- £24000 - £26000, Central London
Poll
Latest Issue
Issue June 2009
- Indesit's London launch
- Mystery shopper: the verdict on luxury
- State of the Industry update
- Barbados lowdown
Gozo Mini Guide
Read C&IT's mini guide to Gozo and learn more about this glittering Mediterranean jewel.
Produced in association with the Malta Tourism Authority.



Your Comment