Brownsover Hall Hotel ceases trade to avoid further losses

Rugby-based hotel Brownsover Hall Hotel has shut down permanently from 22 August 2024 to avoid further losses. In a statement published on the group’s website, the hotel stated that it will no longer be able to accommodate any current or future bookings, following the surrender of its licence to trade by the property owners. The hotel instructed Ben Robson of Bridge Newland Limited who will assist with placing the company into Creditors Voluntary Liquidation. Formal notice of the insolvency process being undertaken and the dividend prospects for creditors, will be sent out by them, to creditors, as soon as they are able. The group stated that a purchaser for the property has been found and it is intended to close the business for a period of time in order to complete refurbishments. All employees are also asked to limit their social media activity, regarding their position or the position of the company, as “any misinformation could cause greater distress”. The Brownsover Hall Hotel was sold to a Far Eastern-based investment company for £3.25m in 2015. The 47-bedroom hotel is made up of the main mansion and several smaller buildings, including the Stables, the Coach House and the Coachman’s Cottage. All three of which were designed by architect Sir George Gilbert Scott in around 1855. In 2020, 7 Hospitality Management (7H) was appointed as the hotel management company for the hotel. Brownsover Hall Hotel, said: “We apologise for being unable to give greater notice to all parties and we are in the process of contacting all of its employees, customers, suppliers and stakeholders. “Any customers who have paid deposits for services which they will no longer receive should contact their bank, card provider or payment facility as any payment paid by a credit card, or by a payment facility such as PayPal, will be covered by credit indemnity insurance which allows for customers to be repaid by their provider if the payment is above £100 where the service will not be received.” The group added: “Unfortunately, most debit cards do not provide credit indemnity insurance and BACS & CHAPS payments will often also not be covered. Therefore, if your provider confirms that it is not responsible for making a repayment to you, your claim will rank as an unsecured creditor within the insolvency process. However, given the limited assets owned by the company, creditors should note that a dividend to unsecured creditors is not likely here. “The director sincerely apologises for any distress caused by the closure and can confirm that he is committed to working towards closing the business as quickly as possible, in the appropriate way, so that all parties are formally notified of their position as promptly as possible.”