Hotel Verta, the £50 million luxury hotel, located on the south side of the River Thames, opposite Chelsea Harbour Pier was opened by von Essen Hotels last September. It is unfortunate that the new property has gone into administration within a year of opening as von Essen and its entire chain has gone into administration. Christies & Co has been appointed agents and are accepting bids for 26 properties and the lone hotel opportunity in the chain. Last month, 0n July 26 Ernst & Young was appointed as the administrator for Hotel Verta.
The administrators aim to keep the hotel running as usual and find new owners for the running business. Maurice Moses and Angela Swarbrick have been appointed by Ernst & Young as joint administrators. They will continue to run the hotel while looking for prospective buyers for the business. The hotel, which sits alongside the London Heliport in Battersea, will continue to run as normal while new owners are being sought. The hotel also had to go into administration as the debts had mounted to an alarming level making the business unviable without the infusion of new investment.
The luxury chain von Essen had gone into administration as early as April as its debt had spiraled to £250 million. Considering the valuation of the company the debt levels were considered unacceptable, hence the administrators come into the picture to manage the affairs, business and property of the companies in order to safeguard the interests of the stakeholders. The administrators act as the agent of the company without personal liability. Hotel Verta was not part of the initial deal for administration and continued to be owned by von Essen founder Andrew Davis till last month but was included to meet the massive liabilities.