Kroll appointed for administration of Manchester hospitality firm

22 September 2021 Consultancy.uk 2 min. read
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Restructuring experts from Kroll are overseeing the sale of a Manchester property business, with a hotel and apartment complex amid the firm’s portfolio. The Ainscow Hotel is set to be sold as a going concern, however The Block in Liverpool is set to become a divestment exercise as further works are required before it can be occupied.

Artisan H1, The Ainscow Hotel, Greyday, and Artisan Group Facilities Management have appointed Jimmy Saunders and Andrew Knowles of Kroll Advisory as Joint Administrators. The four Companies hold a number of assets throughout Manchester, including a former mill which has potential for redevelopment, several apartment buildings which were developed by the Companies several years ago.

Owned by Artisan H1, the Ainscow Hotel is based in Salford, Manchester. The Ainscow employs 30 people, and will continue to trade while the administrators look to sell the firm’s assets on. Despite the company entering administration on 10 June 2021, bookings at the hotel are being honoured – and are expected to improve as the country continues to ease lockdown restrictions and the key Christmas trading period begins.

Kroll appointed for administration of Manchester hospitality firm

The process is not as simple for other parts of the process, however. Artisan H1 also owns The Block on Liverpool Waterfront. The two apartment buildings built in 2011 were impacted by a major fire in December 2017, which destroyed a multi-storey car park adjoining The Block and the Liverpool Echo arena.

According to Kroll’s Knowles, “The subsequent remedial works to The Block and matters relating to the insurance claim and associated works have placed substantial pressure on the group, and The Block is still not fit for occupation with significant remedial works remaining. The Group has also been impacted by the industry ramifications from the Grenfell Tower disaster, with several residential buildings owned by the group incorporating cladding to the facades. This has reduced the ability of the Group to sell apartments, as is the case for third party leaseholders within the same buildings.”

In respect to the residential developments the Joint Administrators are expected to progress with a  divestment exercise by selling the respective assets. This will be a staged process with the initial focus on the buildings and apartments not impacted by cladding, and continued work with managing agents and professional consultants to resolve those buildings which are impacted. In respect of The Block, the Joint Administrators are working with relevant stakeholders in the hope that the remedial works can be completed.