In case you are in the market for a castle – now might just be the best opportunity you’ll have. That’s because the Von Essen Hotels is collapsing, and leaving behind a debt trail of more than $383 million.
Let the Bidding Begin
Many are expecting a bidding frenzy, as incredible hotels like Ston Easton Park, the Royal Crescent in Bath, Amberley Castle, a 900 year old castle in West Sussex and others are about to be up for grabs.
The most famous of the offerings is Cliveden, a country home on the banks of the Thames in Berkshire. It has served as a home to an earl, two dukes, a number of viscounts and the Prince of Wales.
The Von Essen Hotels collapse comes after many attempts by chairman Andrew Davis to find an outside investor to help to cut the company’s debts. He has, at times, been in talks with Peter de Savary, the Mittal Steel dynasty, Turkey’s Sabanci family, the Qatari ruling family and others.
Ernst & Young Steps In
Now, administrators from Ernst & Young have been appointed at the request of Barclays and Lloyds Banking Group after Von Essen Hotels failed to make interest payments on the £250 million they had borrowed. They have also, apparently, breached a covenant governing the minimum level of underlying earnings after they have experienced difficult trading in recent months.