Herald Express (Torbay, Brixham & South Hams Edition)
Cash-flush bay hotelier’s vow to creditors
THERE is light at the end of the tunnel for businessman Keith Richardson – whose hotels chain collapsed just a few months ago.
After selling two of his six hotels he is looking to the future and pledging to pay off the company’s debts.
Administrators were called in as Mr Richardson’s hotel empire faced debts of around £15 million. Following the sale of two of his hotels for £17.75 million, £12.5m has been used to settle his bank mortgages. The remaining funds are set aside for the company’s creditors and taxman – with creditors also likely to get 8% interest on the money owed to them.
The former Grosvenor and latterly John Burton Race Restaurant with Rooms in Torquay has already been renamed and re-branded as the Abbey Sands Hotel after Mr Richardson split with the former TV chef. He called the venture with the TV chef “a dream but it did not happen”.
WELL-known businessman Keith Richardson – whose hotels chain suffered a financial collapse just a few months ago – is looking forward to a new future including a pledge to pay off the company’s debts.
He has sold The Fowey Hotel in Fowey and the Metropole Hotel in Padstow to the Harbour Hotels chain in a deal worth £17.75million.
Administrators were called in as Mr Richardson’s hotel empire faced debts of around £15m.
But following the sale of the two hotels £12.5m has been used to settle his bank mortgages. The remaining funds are set aside for the company’s creditors and taxman – with creditors also likely to get 8% interest on the money owed to them.
A notice has been sent to creditors setting out a proposal to a meeting on October 1 to create a creditor’s voluntary arrangement to pay off all the unsecured creditors of Richardson Hotels Limited and the Fowey Hotel Limited.
Following creditors’ agreement this will return the companies to Mr Richardson and will allow them to exit administration and continue to trade.
His companies still own the Grand in Torquay and the Falmouth and Royal Beacon Hotels in Falmouth and Exmouth.
The former Grosvenor and latterly John Burton Race Restaurant with Rooms in Torquay is still in administration but will hopefully come back into the Richardson Hotels stable. That business, in Belgrave Road, has already been renamed and re-branded as the Abbey Sands Hotel after Mr Richardson split with former TV chef John Burton Race.
Mr Richardson said: “My administrators have been very nice people. We have worked well together.”
“My administration has only lasted from January 8 to October 1. During this time all six of my hotels have continued to trade well and after selling two I retain four after paying off all my mortgages.”
Of the former John Burton Race hotel Mr Richardson said: “We have just changed the name to the Abbey Sands. John Burton Race and me have parted on amicable terms.
“I got fed up with him. He is a brilliant chef, we had a dream but it did not happen.
“We just could not get enough people paying £60 for a six-course taster menu.
“I lost a lot of money over it. You learn lessons in life.”
He doesn’t blame the demise of his company totally on the failure of the former Burton Race branded hotel.
He reveals how he was in the middle of a £4m on deal to buy another Torquay business but he claimed there were delays over finalising and securing a £20m loan from the bank.
Suddenly, the VAT man was knocking on the door after calling in a £750,000 unpaid tax bill.
He said: “When the administrators came in they asked me if I wanted to sell the lot and retire. Of course not! Life is too much fun. I am chartered accountant and I knew that by selling two hotels I could surmount the problems.
“I had a very strong balance sheet – I now have four hotels worth £18m.”
He added: “It is just a challenge for me. If you work hard you come out the other side.”