Derbyshire hotel placed into administration after failing investors
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A Chesterfield hotel is one of six placed into administration after investors became concerned about their returns.
Shepherd Cox Hotels (Chesterfield) Limited, which trades as the Sandpiper Hotel, has, along with five other venues in Hartlepool, Darlington, Manchester, Sedgefield and Bicester, called in administrators from Quantuma earlier this month.
Each of the Shepherd Cox companies is a Special Purpose Vehicle (SPV) that owns a hotel and sold hotel rooms to investors with the promise of a guaranteed fixed return. The SPVs were unable to meet these guaranteed payments and were held by the High Court to all be insolvent.
Law firm Crowell & Moring has been appointed to the case. Partner Paul Muscutt said: “The ruling of the Insolvency and Companies Court is the right result for the investors who can now begin to get answers in relation to the management and running of their investments. In the next phase, our team will be advising the administrators in investigating the affairs of the companies and the directors and realising assets to maximise returns to the creditors.”
Shepherd Cox bought the Sandpiper Hotel from retiring owner David Cook in 2017 in a £1.35m deal.
Cook built the hotel on Sheffield Road, Chesterfield in 1975 and operated it as a family-run business.
The Sandpiper has 46 en-suite bedrooms and three self-catering apartments, a restaurant that can sit 60 people, conference and banqueting suites, a café lounge, restaurant and parking.