Signature’s hotels arm calls in administrators
Developer Signature Living Group’s hospitality arm has collapsed, it has emerged a week after the company that manages one of its portfolio hotels in Liverpool also went into administration.
Administrators at Duff & Phelps were appointed on 15 April to Signature Living Hotel Limited, which holds various freehold and leasehold interests of the wider Signature Living Group run by developer Lawrence Kenwright.
Among the interests that holds is the leasehold title to the building occupied by the Shankly Hotel, whose holding company Signature Shankly collapsed into administration last week citing pressures from the Covid-19 pandemic.
The Shankly occupies Millennium House, at 60 Victoria Street in Liverpool city centre. It includes 59 aparthotel-style bedrooms celebrating Liverpool FC manager, Bill Shankly. Administrators at Duff & Phelps are currently investigating the hotel company’s financials to understand the “future trading outlook of the hotel”.
Signature Living Hotel also provides corporate guarantees to various secured and unsecured creditors of the group, including the various bedroom investors.
Michael Lennon, joint administrator at Duff & Phelps, said in a statement today that one creditor, Henslow Trading, has sought to protect its investment in Signature Shankly, “necessitating a need to appoint the joint administrators to protect the freehold interest in Millennium House”.
Lennon added: “The trading operations of the Signature Living Group are unaffected by the various administrations and we understand that all trading will recommence at the earliest opportunity.”
The administrators are carrying out a full review of the Signature Living Hotel’s interests and intends to write to creditors “in due course” to update them, the statement added.
The Signature Living Group operates several other hotels including the 30 James Street and Dixie Dean hotels in Liverpool, as well as The Exchange Hotel in Cardiff. Last year, it unveiled designs by Tim Groom Architects for its proposed first hotel in Manchester, on a site on Liverpool Road.
Last year, Signature Living put The Shankly and 30 James Street on the market with Savills for £35m and £16m respectively, but Duff & Phelps was unable to say whether the properties are still being marketed for sale.