The South West hotel chain’s owner Keith Richardson admitted he ‘spent too much money’ on the project and is reportedly looking to sell off one of the group’s hotels.
Burton-Race opened a restaurant at the former Grosvenor Hotel in 2016, and the property rebranded as John Burton-Race – Restaurant with Rooms in December following a ‘substantial investment’.
Richardson remains sole owner of the hotel despite the chef's name being above the door.
Richardson told Devon Live the cost of revamping the site had caused the rest of the business to fall in to difficulty.
Mark Boughey and Matthew Wild from RSM Restructuring Advisory LLP have been appointed joint administrators of Richardson Hotels Ltd and Fowey Hotels Ltd, which form part of the Richardson Group of hotels.
The companies operate five properties in South Devon and Cornwall, but the Burton-Race site is not listed among them.
“I spent too much money on the Grosvenor, but all the hotels are open as usual,” Richardson told Devon Live.
“I’m going to sell a hotel. It’s just a case of cashflow issues. It’s just a hole, We have a plan and we know where we’re going. The hotels are open and the staff very much support this process.”
The hotels in administration include The Grand Hotel in Torquay, The Royal Beason Hotel in Exmouth, The Falmouth Hotel in Falmouth, The Fowey Hotel in Fowey and The Metropole Hotel in Padstow.
“We appreciate that there will be a significant degree of concern and uncertainty for staff, guests and suppliers as a result of the companies entering administration,” says Boughey.
“All of the hotels offer enviable locations, architecture and facilities, so their rooms are in high demand from both existing and new customers. Whilst things are at an early stage, we are therefore hopeful that a long-term future for of all the hotels can be secured."
Burton-Race was awarded his first Michelin star while head chef at Le Petit Blanc in Oxrord 1983, and went on to win two stars at both L’Ortolan in Berkshire and his eponymous restaurant at London's Landmark Hotel in 2000.
He also won a star at The New Angel restaurant in Devon less than a year after opening in 2004.