A hotel in Horley has closed making 42 people redundant after the Menzies Hotel group went into administration.
The Menzies group owns 15 hotels, including the Chequers Hotel in Brighton Road, Horley.
The business and assets of 12 hotels, and the operating platform of the Menzies Hotels Group, have been sold to the Topland Group after KPMG were appointed joint administrators to the company on Friday (November 29).
However, three hotels operating under shorter-term lease agreements, including the Chequers in Horley, Luton and Swindon will close, with a total of 155 employees across the three sites being made redundant.
Some 42 have been made redundant in Horley.
Rob Croxen, partner at KPMG and joint administrator, commented: “Following our appointment in May 2013 as administrators to the non-trading parent companies of Menzies Hotels Group, we have worked closely with stakeholders to secure the best possible outcome for creditors. After reviewing a number of options, it became clear that a pre-pack sale of the business and the freehold properties would provide the greatest return to creditors, while also preserving the majority of jobs across the business.
“Unfortunately, however, the terms of the three leasehold properties proved to be unattractive to potential buyers. We will be assisting those affected employees in claiming redundancy payments from the Redundancy Payments Office.”