Signature Eden Limited - Case Update

The Joint Administrators of a hotel named after an English football legend have revealed that the property is operating at a loss due in part to “legacy ransom payments” that have needed to be met in order to stabilise trading operations.

Signature Eden Limited, the company behind the Dixie Dean Hotel in Liverpool, entered administration on 5 August 2022 after it was unable to repay its debt to its secured creditor, Lyell Trading Limited, owed approximately £4.8 million as at the appointment date. Michael Lennon and Matthew Ingram of Kroll were appointed Joint Administrators.

At the time of the appointment, UK Accommodation Ops Limited (UKAOL) was operating the business under a management agreement with the company. It was the Joint Administrators’ intention to maintain this arrangement through a potential sale of the business. However, it soon became apparent UKAOL were in financial difficulty and critical creditor payments were no longer being prioritised, including turnover rent due under the management agreement. As a result, the Joint Administrators terminated the management agreement on 8 September 2022 and the Company took over trading operations from this date.

In their latest progress report, the Joint Administrators describe how trading performance has been poor due to rail strikes, the cost of living crisis, exceptional costs and legacy ransom payments to UKAOL that have needed to be met in order to stabilise trading operations. This has led to the business trading at a loss.

The Joint Administrators have engaged CBRE to market the property and negotiations remain ongoing. They have been assisted by Shakespeare Martineau. Their most recent progress report can be found HERE.