Potential buyer for Hartlepool's Grand Hotel found with sale process underway

There are hopes that Hartlepool’s empty Grand Hotel will be shortly sold following its closure a year ago.

Tuesday, 1st June 2021, 4:45 am

Documents filed by administrators for the landmark 122-year-old building said a sale process is in the early stages after a potential buyer was found.

The move followed a court application by a number of investors when the hospitality industry was hit hard by the pandemic.

Sign up to our daily newsletter

The i newsletter cut through the noise

The Grand Hotel in Hartlepool.

Simon Bonney and Carl Jackson, of Quantuma Advisory, were appointed as the joint administrators and are now the business’s joint liquidators.

A progress report to creditors was recently filed with Companies House.

It stated there were outstanding debts to creditors of more than £2.8million and the building had suffered thousands of pounds of damage since closing.

But it added that a potential buyer has been identified.

The Grand Hotel (left) next to the Wesley Chapel which is also vacant. Picture by FRANK REID

The report stated: "The sale of the property is in the preliminary stages of being progressed with a chosen purchaser who we consider will be well placed to work with investors to take the property forwards if the sale completes.

"The joint liquidators will conclude this sale once they are in office and will report the outcome to creditors.”

The report said there has been significant issues with security and maintenance, stating: "Although measures have been undertaken to protect the value in the property, there was damage caused.”

It said £22,000 has been spent on repairs and an insurance claim made for £51,000, all of which is expected to go on further repairs.

The administrators received 53 claims from unsecured creditors, who can include suppliers, utility companies and the tax office, worth more than £2.85million.

The report said the administrators hope there will be enough money from liquidation of the company to pay them something.

The administrators have also helped employees to get payment from the Redundancy Payments Office.

The report added: "It is hoped that there will be sufficient realisations in the liquidation to allow a distribution to preferential creditors.”

As well as The Grand Hotel, other Shepherd Cox owned hotels which were affected were based in Bicester, Darlington, Manchester, Sedgefield and Chesterfield. They employed around 100 people between them.

Read More

Read More
Major Hartlepool employer Utility Alliance owed 250 creditors more than £4 milli...

Support your Mail and become a subscriber today. Enjoy unlimited access to local news, the latest on Pools and new puzzles every day. With a digital subscription, you can see fewer ads, enjoy faster load times, and get access to exclusive newsletters and content. Click here to subscribe.