Provincial Hotels and Inns collapsed into administration owing nearly £2m to various creditors, according to documents filed by Mazars to Companies House.
The group had appointed Patrick Lannagan and Julien Irving from Mazars as joint administrators as of 21 June 2021.
Incorporated in 2013 Provincial then acquired a portfolio of nine public houses and two hotels from Mitchells in 2016 through funding raised from HSBC and a private investor.
This was followed by the disposal of “non-profitable properties” in 2019, raising £1.03m in 2018 and nearly £500,000 in 2019, leaving five remaining freehold properties in the group’s portfolio.
According to the documents, the remaining properties, namely The County Lodge and Brasserie, The Blue Anchor, The Windmill Tavern, The Manor Inn, and Yorkshire House are currently on the market following the administration.
The joint administrators revealed that on 24 June 2021, HSBC issued the company with a demand letter in the sum of £1.54m in respect of loan and overdraft facilities, followed by a second demand letter for almost £50,000.
Further debts of £144,312 to HMRC and £126,148 to 48 trade and expense creditors have also arisen following Provincial’s insolvency.
Mazars revealed that the group made a loss for each of its final three financial years, totalling almost £2.5m.