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Scottish catering and hospitality news in Scotland

Catering in Scotland magazine is published bi-monthly with in-depth features, views and news for the Scottish catering, hospitality and tourism industry. On this page we have the latest news to keep you constantly updated on the market. On the left hand side of the page you can search our archived news which is stored monthly.

Wednesday, January 14, 2009

MANAGEMENT TEAM BUYS FOLIO HOTELS

An agreement has been reached for a management buy-out of 18* Folio hotels, including three Scottish properties on the west coast. The new company, to be known as Mulbourn Ltd and led by Managing Director Matthew Welbourn and Finance Director Alan Murray, will continue to trade under the Folio Hotels banner. Funding will be provided by the hotel's landlords, the management team and private equity.

The deal, which will buy the company out of administration, is expected to save 1,200jobs in the 18 hotels around the country.

The new company is forecasting a turnover of ?48 million in its first year of trading.

There is no doubt that trading conditions will be tough over the next few months however we believe we are well poised with an excellent product to combat the current downturn in the economy,' said Mr Welbourn.

'Our current landlords are totally behind the new company and management team and we have a very robust plan moving forward. This is a difficult time but we are sure that customers will continue to support their local hotel and it is certainly our intention to honour any bookings that we have in the pipeline,' he added.

The Ballachulish and Isles of Glencoe hotels in Argyll, and the Caledonian Hotel in Oban, form part of the deal.

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