Ahaven Hotel appoints administrators from KPMG

15 October 2019 Consultancy.uk 3 min. read
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Twelve people have been made redundant after a prominent Fife hotel closed its doors in early October. Administrators have been appointed from KPMG, and have commenced efforts to sell the OYO Beveridge Park Hotel in Kirkcaldy.

Hotels form a key part of the wider tourism and business traveller ecosystem in the UK, however, as the nation’s economy has slowed, the sector has been no exception. Even in London, hotels have seen stagnant growth in 2019, while deal activity in the space has fallen thanks to changing investor priorities and Brexit uncertainty. With trade and investment in the sector floundering, a number of hotel franchises have faced insolvency procedures.

Earlier in the year, Duff & Phelps helped to secure the future of Losehill House Hotel & Spa with a multi-million refinancing deal. Now, a buyer is urgently being sought for the OYO Beveridge Park Hotel in Kirkcaldy, with creditors installing professional services firm KPMG to oversee the administration of owner Ahaven Hotel.

Ahaven Hotel appoints administrators from KPMG

Owners Bobby and Gina Kumar closed the hotel after 12 years of trading with little warning, prompting concerns from people whose bookings have been cancelled or who have paid deposits for forthcoming functions. The owners sought to address their financial difficulties through a range of measures, including staff cuts and ploughing their own money into the business.

Later it was revealed that cash flow problems had led to “significant” creditor arrears – leaving them no option but to shut up shop. Administrators Blair Nimmo and Geoff Jacobs of KPMG confirmed there was “no other viable option” than for the venue to cease trading with immediate effect. A total of 12 jobs have been lost.

Nimmo, who is KPMG’s UK Head of Restructuring, said, “Unfortunately, due to challenging trading conditions and cash flow difficulties, Ahaven Hotel Limited was unable to continue trading. This has resulted in the closure of the Beveridge Park Hotel and the consequent redundancies which have been announced. We will work with all affected employees and the relevant government agencies to ensure a full range of support is available. We will also now be looking for a purchaser for the hotel and its assets.”

Set up in 2007, Ahaven Hotel took over the 31-bedroom landmark, formerly known as the Parkway Hotel, before becoming known locally in Fife for its Indian and Scottish cuisine and its extensive functions suite, which held regular weddings and events. The hotel is expected to remain closed for the foreseeable future, though speaking to local news site TheCourier.co.uk, a spokesperson for OYO did raise hopes it might be able to re-open.

“There were a high volume of future bookings already confirmed and OYO would love to keep the hotel operational to fulfil those future stays. Ultimately, this decision will rest with the administrators, so we cannot comment further at this point,” the spokesperson explained.