The Feathers Hotel in Ludlow has entered into administration following trading difficulties as the result of a legionnaires outbreak in 2017.
Raj Mittal and Steve Stokes, partners at specialist business advisory firm FRP Advisory LLP, have been appointed as joint administrators. The hotel, which employs 30 people, will remain open for business while options for its future are assessed.
A woman died and another fell ill following an outbreak of Legionnaires disease at the property, and the hotel closed temporarily after taking advice from Public Health England (PHE) in the West Midlands and Shropshire Council. Laboratory tests from the hotel showed links between the legionella bacteria found in the water samples and the two guests who stayed there.
Joint administrator Raj Mittal said: “The Feathers Hotel worked closely with Public Health England (PHE) in the West Midlands and Shropshire to enable a staged reopening of the business. Unfortunately, the impact of the initial closure and restricted trading conditions resulted in severe cash flow difficulties, which led to the company entering administration.
“We’re now working closely with the directors to evaluate all routes forward for the business over the coming weeks.”