The House Collection calls in the administrators


Poets House in Ely and Paddocks House in Newmarket, part of the House Collection, have gone into administration.

The two boutique hotels, run by managing director David Toulson-Burke, called in administrators BDO LLP in July.

Both businesses are continuing to operate as usual and trade will continue as normal.

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All 72 employees have kept their jobs. However Toulson-Burke and the House Collection’s finance director, Jonathan Baker have both been made redundant.

Accountancy and business advisory firm BDO LLP issued a statement saying: “BDO LLP business restructuring partners, Sarah Rayment and Tony Nygate, were appointed joint administrators of House Collection Ltd on July 9 2015, together with Poets House Ltd and Paddock House Ltd on July 15.

“The joint administrators will be undertaking a strategic review of the options available, whilst the underlying businesses continue to trade as normal.”

In a statement, House Collection Ltd said: "On July 9 Eastern Counties Finance (ECF), the lenders of House Collection Ltd, Poets House Ltd and Paddocks House Ltd, placed House Collection Ltd into administration.

"House Collection had been working with ECF to arrange a re-finance of the properties following on from recent litigation losses made upon the business from contractor issues with the build of the properties.

"House Collection has worked continually to reduce debt and bring the business model back in line.

"After being assured of a re-finance deal with ECF, House Collection volunteered their business plans and model showing budgeted profits from May 2015.

"In June 2015, ECF offered monies for re-finance and in return asked for full control of the business leaving the current owners/majority shareholders with a minority share and employees of ECF.

"This was refused and since this time the House Collection have sought and secured funds to re finance the asset and business debt.

"This offer was made to ECF but was quickly rejected without comment. Immediately BDO were appointed as administrators and have since taken over the day to day running of the hotels.

"Both directors are working with legal teams to recover their business and carry on the good will and profitable business model that they have spent the last three years creating.

"Within this new finance model all suppliers were to be paid and the businesses trading in profit as demonstrated to ECF.

"Despite offering this David and Jonathan are shocked that this was not acceptable to ECF thus leaving creditors who were to be paid along with staff employed within the group all at significant risk."

The joint administrators have appointed a local operator, PAT Partners, to support management with the continued operations of the hotels.

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Zoe Monk

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