Administrators of a South Shields seafront hotel say they will aim to honour bookings and events after the business went bust, putting nearly 100 jobs at risk.
The Sea Hotel, which overlooks Ocean Beach Pleasure Park and is opposite South Marine Park, underwent extensive refurbishment only four years ago after new owners High Street Hospitality - later renamed The One Collection Leisure Ltd - took over the venue in a £1m deal. Around 95 jobs are now under threat as administrators say it is unclear whether there will be redundancies.
Lee Lockwood, a partner at RSM UK and joint administrator said a rescue buyer is now being sought for the Best Western-run hotel, which received a £750,000 upgrade in 2018. The changes at the time included the addition of a Latin American-themed bar and kitchen – with live music and dance classes - a sports bar, a fish and chip takeaway and a coffee outlet.
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The One Collection Leisure Ltd was part of the failed Newcastle-based High Street Group of companies which collapsed into administration owing £211m. It owns a series of bars and restaurants across the North East, including Davanti Classico and Ora in Tynemouth; The Purple Peacock in Newcastle and Hotel 52 in Durham, among others. Accounts for firm are overdue at Companies House.
Mr Lockwood said: "As administrators, we are currently reviewing the company’s business to evaluate the options available to creditors and formulate proposals. As part of this process, the hotel will remain open, and trading will continue. Whilst it does, we will aim to honour all future bookings and events including those where deposits have been paid.
"It is unclear whether there will need to be any redundancies at this stage, and we are actively consulting with the company’s employees in this regard. To provide the employees and other stakeholders with the best possible outcome, we intend to market the hotel with a view to finding a buyer as a going concern. Full marketing details will be released in due course."
One Collection managing director Phill Brumwell said the company was "really disappointed" at the actions of its lenders that led to the firm being put in administration. He said that "despite very difficult trading periods impacting the whole of the hospitality industry, the hard work of the hotel's employees has ensured that the Sea Hotel has continued to trade profitably and was on target to achieve its objectives during 2022."
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