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| Version 0 | Version 1 |
|---|---|
| Hotel company in administration | Hotel company in administration |
| (about 6 hours later) | |
| The Folio Hotels group has called in administrators following a sharp downturn in business. | The Folio Hotels group has called in administrators following a sharp downturn in business. |
| The Swindon-based company has 36 hotels throughout the UK and a turnover of about £70m. | The Swindon-based company has 36 hotels throughout the UK and a turnover of about £70m. |
| Folio also blames high rents and an expensive refurbishment programme for its cash flow problems. | Folio also blames high rents and an expensive refurbishment programme for its cash flow problems. |
| Administrators MCR are reviewing the financial position of the company with a view to selling the business as a going concern. | Administrators MCR are reviewing the financial position of the company with a view to selling the business as a going concern. |
| Paul Clark, from MCR said: "We are being repeatedly told that consumers' discretionary spending is being reduced and that inevitably, the leisure sector will be impacted. | Paul Clark, from MCR said: "We are being repeatedly told that consumers' discretionary spending is being reduced and that inevitably, the leisure sector will be impacted. |
| "The Folio Hotels Group has been in the middle of an expensive and comprehensive refurbishment project and has also suffered from rentals that were fixed at the height of the market. | "The Folio Hotels Group has been in the middle of an expensive and comprehensive refurbishment project and has also suffered from rentals that were fixed at the height of the market. |
| "Together with the current economic climate, this has exacerbated cash flow demands. | "Together with the current economic climate, this has exacerbated cash flow demands. |
| "However all the hotels in the group will continue to trade whilst a buyer is sought as a going concern. | "However all the hotels in the group will continue to trade whilst a buyer is sought as a going concern. |
| "We are confident that there will be a significant amount of interest." | "We are confident that there will be a significant amount of interest." |
| The group employs 2,000 people and its establishments include the Redwood Hotel and Country Club in Bristol and The Madison in Swindon itself. |