Croydon Park Hotel appoints administrators from KPMG

The Croydon Park Hotel has appointed administrators from KPMG, after the coronavirus pandemic significantly weakened its cash position. The naming on administrators sees all 91 members of staff made redundant, while KPMG’s team is currently weighing up how best to rescue the value of the business.

Businesses centring on travel and hospitality have endured a nightmare start to 2020. With the global outbreak of coronavirus, and the international lock-down ushered in to slow its spread, every aspect of the leisure sector has been battered by Covid-19-related headwinds. In the airline segment for example, 700 of Lufthansa’s fleet of 760 planes have been grounded amid the coronavirus lock-down, with the number of passengers falling by 99%, while UK hotels have been ordered to close their doors to new guests – leaving many already struggling companies with no choice but to appoint administrators.

The latest hotel to collapse under the strain of lock-down is the Croydon Park Hotel, which appointed administrators from KPMG in mid-June. James Bennett and Steve Absolom from KPMG’s restructuring practice have been named joint administrators to Kasterlee UK, which traded as Croydon Park Hotel, which had been closed to visitors since lock-down measures were introduced in March.

Founded in 1983, Croydon Park Hotel in the London Borough of Croydon, has 211 guestrooms and suites and 9 meeting rooms with free Wi-Fi throughout. The four-star hotel is just a three-minute walk from East Croydon station, and its largest meeting room – The Centennial – can host events for up to 220 delegates theatre style.

The hotel had been off-limits to the public in recent weeks, but had been used in recent weeks by the local authority to provide temporary accommodation for key workers, as well as shielded accommodation for vulnerable people in the local community. Unfortunately, with that arrangement coming to an end in June, and as Covid-19 had had a significant impact on the company’s cash position, the directors of the business took the “difficult decision” to appoint the joint administrators.

A statement from KPMG read, “Regrettably, all 91 members of staff have been made redundant. The joint administrators are speaking with all employees to provide them with all available support and assistance. The joint administrators are now considering their options to realise value for the business.”