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Deloitte lined up as administrators to boutique hotel chain

Accountants Deloitte have been lined up as potential administrators to boutique hotel group MWB as it struggles to deal with a financing crisis.

Bankers to the company behind the Hotel du Vin and Malmaison chains appointed Deloitte to help it refinance the group or to step in as administrators if talks fail, according to the Daily Telegraph.

MWB owns 26 hotels across its Malmaison and Hotel du Vin brands.

The move comes just two weeks after the company suspended trading in its shares and warned shareholders their investment could be worthless.

The company is in dispute with its part-owned serviced office provider subsidary MWB Business Exchange about the repayment of multi-million pound liabilities between the two companies.

MWB Group owes its subsidiary £8 million, while there is a corresponding liability of £4.8 million that was due to be repaid in monthly instalments from September.

When Business Exchange informed MWB it intended to offset its £4.8 million liability against the £8 million loan, MWB suspended trading in its shares.

Business Exchange said earlier in the month that it will not release its financial results for the financial year ended June 30 until the matter is resolved.

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