On 28th September 2020, Shepherd Cox Hotels Holdings Ltd went into administration. The application was made by Luqa Ltd.
Those familiar with the Shepherd Cox structure will know that Shepherd Cox Ltd and Shepherd Cox Hotels Holdings Ltd were the two companies at the very top.
Shepherd Cox Ltd was the company responsible for room sales i.e it acted as the sales agent. It did not own any of the hotels and went into administration a few weeks ago. Holdings provided ‘management’ services’ to the portfolio of hotels. In return for providing these services Holdings charged a management fee to the hotel companies. It can best be summarised as Holdings was a company which was paid a lot of money from hotels which were loss-making. It is believed that significant sums of investor money were routed through these two companies.
The last set of accounts for Holdings describes the company’s Principal Activity as “ownership of a number of subsidiary companies who in turn own and manage hotels in the UK“. The Business Review states “Despite the losses incurred in the Year to 31st March 2019 the Group has settled following the swift expansion into steady growth to profitability“. That doesn’t quite stack up with almost all the companies involved in either an administration or liquidation process at present. The accounts show that Holdings owned shareholdings of 80% or more in 15 subsidiary companies.
To view our previous article on Shepherd Cox please click here.
To view a more recent article on Shepherd Cox please click here.