Buy-out saves 60 jobs at hotel

PUBLISHED: 14:50 12 January 2009 | UPDATED: 13:51 06 May 2010

SIXTY jobs have been saved at a local hotel following a management buy-out. Harpenden House in Southdown Road was one of 18 Folio Hotels bought out of administration by a new company, Mulbourn Ltd., which will continue to trade under the existing name w

SIXTY jobs have been saved at a local hotel following a management buy-out.

Harpenden House in Southdown Road was one of 18 Folio Hotels bought out of administration by a new company, Mulbourn Ltd., which will continue to trade under the existing name with funding provided by the hotel's landlords, the management team and private equity.

The hotel chain's downfall was blamed on a badly-timed programme of refurbishments and the burden of large rents negotiated when the market was at its peak.

But Mulbourn believes it is well placed to move forward and secure new business with £2.5 million of the £35 million it invested recently in refurbishments throughout the estate at Harpenden House.

Commenting on the announcement, Katherine Webster Brown, general manager of Harpenden House, said: "It's good news that an agreement has been reached and it is very much business as usual as far as we are concerned.

"We know that trading conditions will be tough over the next few months, however we are sure that our customers will continue to support their local hotel."

She added: "We will be honouring all the bookings that we have in the pipeline.

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