MANAGERS of the Malmaison Hotel chain have restated their commitment to opening a 91-room hotel in Dundee as the group’s parent company confirmed it has called in administrators.
MWB Group yesterday announced that it had “resolved to appoint” administrators with “immediate effect” and that it has filed notice of intention to appoint Deloitte.
Malmaison and sister chain Hotel Du Vin said the move had “no impact” on the hotels, adding that the new Malmaison hotel in Dundee was “on track for completion in July 2013”.
Shares in the group were suspended on 31 October and investors warned their stakes could be wiped out after its part-owned subsidiary, MWB Business Exchange, withdrew repayments on a £4.8 million loan. The temporary office space business claimed it was owed £8m by MWB Group.
MWB had been developing its hotel business, which is named after Napoleon’s Chateau de Malmaison, with the intention of selling off the business and returning the proceeds to shareholders.
The Malmaison chain has boutique hotels in city centres across the country, including Aberdeen, Edinburgh and Glasgow.
Hotel du Vin, which was formed in 1994, has smaller hotels based mainly in cathedral or university towns.
MWB said that it was not able to resolve the issues and amid uncertainty over the potential cash receipts it was unable to secure other facilities from existing or new lenders.