Hotel services company Hotel Solutions London saved from administration by former owner

By Emma Eversham

- Last updated on GMT

Related tags: Money, Hotel

Housekeeping Solutions Ltd will now take over all Hotel Solutions London Ltd contracts which includes supplying staff and services to hotels
Housekeeping Solutions Ltd will now take over all Hotel Solutions London Ltd contracts which includes supplying staff and services to hotels
Hotel Solutions London Ltd, the hotel operations and service outsourcing company placed into administration last week because it could not afford to pay its debts, has been bought by its former managing director. 

Pearl Palihawadana, one of the people who set up Hotel Solutions London Ltd four years ago, bought her former business back under a new company called Housekeeping Solutions Ltd yesterday. 

The move will save 1,100 jobs and ensures the continuation of contracts with a number of hotels and catering businesses, including the operation of two hotels – The Hampton by Hilton in Corby and the Park Inn in Doncaster – but leaves a £2m bill to HMRC and other creditors unpaid. 

Jason Baker of administrators FRP Advisory LLP said he was pleased the business could be saved in such a limited time frame, safeguarding jobs in the industry.

He said: “Due to the pressure of the month end payroll we had a very limited time to achieve a sale. In our view this is an exceptional result for the business, its customers and its employees because the alternative would have been a shutdown and closure, almost certainly this week.” 

Palihawadana, a director at Housekeeping Solutions Ltd, said she was ‘delighted’ to have secured a future for the business and would make payment of wages a priority. 

Debt build-up​ 

The Wembley-based Hotel Solutions London Ltd had been successful in gaining new contracts, but it lost money and was late with payments to HMRC as well as other creditors leading to the decision to place it into administration on 27 March 2012 and sell it as a going concern​. 

Its franchised cleaning company Totally Clean Solution Ltd was also placed into administration last week, but administrators were unable to find a buyer in time and it was closed with all 156 employees made redundant. 

A spokesperson for FRP Advisory LLP said: "With no funds and very limited assets, we were no longer in a position to continue to trade Totally Clean Solution Limited. Unfortunately, no buyer of the company was found and, regrettably, we were forced to begin the shutdown process, with all 156 employees made redundant with immediate effect. 

“All remaining assets will be sold to recover as much value as possible for creditors, whilst managers and employees will receive termination letters with a claim form for statutory redundancy pay during the next few days.”

Related topics: Business, Hotels

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1 comment

Customer

Posted by James,

Am currently booked in one of your hotels and I feel i was unfairly charged in dollars. Was charged on sunday at the xchange rate of 1.6 yet the rate was around 1.4....kindly assist me recover my money

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