Park Hall Hotel Ltd to go into liquidation as owner accuses closure of Covid lockdowns

0

Aysha Khan, director of Park Hall Hotel Ltd, appointed insolvency practitioners Smith & Barnes to handle the liquidation after Ms Khan concluded the company was now insolvent.

This follows the hotel’s sudden closure in February, which left married couples fearing for their deposits as they scrambled to find alternative venues to save their big day.

The hotel has since been acquired by company shareholder Mr Harwinder Singh, 48, who paid £3million for the business after it closed.

Register to our daily newsletter

The former owner of the Park Hall Hotel in Charnock Richard – which closed in February – is seeking to liquidate the business after it was unable to repay its debts, blaming Covid-19 and its lockdowns for his financial difficulties

Smith & Barnes claim the proceeds from the sale were used to repay a £4 million business loan to Goldcrest Finance, with the shortfall reversed.

Since the sale, the company’s board – of which Mr Singh is a member – has decided to put Park Hall Hotel Ltd into voluntary liquidation.

It is unclear at this stage whether new owner Mr Singh intends to reopen the hotel he acquired under a new company.

Insolvency practitioners added that next week, Wednesday May 4, shareholders will pass a written resolution to wind up the company ahead of its proposed liquidation.

The hotel has since been acquired by company shareholder Mr Harwinder Singh, 48, who paid £3million for the business after it closed.

Read more

Read more

Summer drive-in cinema with beer garden coming to Camelot Theme Park next month

In a letter to creditors, Smith & Barnes said: “Due to the Covid-19 pandemic, the company has been unable to trade due to the restrictions put in place.

“Even when the company was able to trade, significant trade restrictions were still in place and the company was unable to trade at full capacity, and therefore started with cash flow problems.

“The company obtained a small rebound loan from the government funding program which was used to pay for the company’s expenses.

“It removed some short-term pressure, but unfortunately it wasn’t enough to support the company’s ongoing cash flow and costs.

“The company has been unable to pay its debts as they come due.

“Given the financial situation of the company, the board of directors of April 25 decided that the company should be placed in judicial liquidation.

“Smith & Barnes have been instructed to assist the Director in this process, and creditors are advised that a resolution to liquidate the company must be considered by shareholders.”

The hotel’s new owner, Harwinder Singh, has been approached for comment.

Share.

About Author

Comments are closed.