Elizabeth Hotels placed in administration

Three companies within the Elizabeth Holdings Group, which operated 14 hotels and 13 pubs in Essex and East Anglia, have been placed into administration leaving 462 hospitality employees uncertain about their jobs just two weeks before Christmas.​

Administrators KPMG were appointed on 8 December to take over Elizabeth Hotels Ltd, Cavendish Hotels Ltd and Elizabeth Estates Ltd, because 'financial liabilities' had 'made it impossible to continue running the businesses as they stood.'

In a statement Elizabeth Holdings said it had been the bank's decision to place the companies in administration because of 'complex financial arrangements'. The directors said the companies had not been in debt to the bank and had 'not given their blessing' to the decision to go into administration.

Continue to trade​

Allan Graham of KPMG said the administrators would continue to run the affected businesses and hoped to honour all bookings for the festive period. "We will continue to trade the business in the short term whilst a buyer is sought for the hotels and pubs, individually or as a group," he said.

Four hotels operated by the companies - Hotel Elizabeth Orwell in Felixstowe, the Felix Hotel in Dereham, the Star Inn in Great Yarmouth and Arties Mill and Lodge in Brigg - will continue to be operated and run by Elizabeth Holdings plc. Employees from those hotels, as well as six employees employed by Elizabeth Hotels were transferred to other group companies before they went into administration.

Agents Colliers Robert Barry have been appointed by KPMG to handle the sale of 11 of the hotels and three investment properties owned by the firm. It has not yet been decided who will handle the sales of the group’s 13 pubs.