Ruthin Castle Limited, which operates the grade II listed building in North Wales, has been bought by Ruthin Castle Estates (made up of existing management, Kepler Capital and Prima Hotel Group) in a pre-pack deal. 100 jobs have been saved and the business will continue as normal. The hotel and spa company went into administration last week and was subsequently bought out straight away by the new partnership. Joint administrators, Brian Green and Paul Dumbell, of PwC were appointed on the 27th June and have been very pleased with the outcome.
Dumbell commented, “In recent years, Ruthin Castle Limited had invested heavily in a substantial refurbishment of the hotel in order to achieve a 4-star listing.” “It is therefore great news that we’ve been able to reach a conclusion which ensures the hotel remains open, and which minimises disruption to staff, suppliers and customers alike.”
Often pre-pack administration is the best solution for a business as jobs can be safeguarded and the business can continue trading without disruption. In this case, the business was sold to existing management and private equity firms, which can raise doubt as to whether the same problems will arise in the future. It’s important to remember that directors will have learned from the experience and won’t want the same mistakes happening again. They will likely be more determined than new owners would be!