Hotel group companies cease trading over unpaid tax bills
Twelve companies within the Liverpool-based Know Group of hotels and restaurants have either been compulsory wound up or gone into voluntary liquidation over unpaid tax bills.
The companies, controlled by husband and wife directors Steven Hesketh and Nicola Perry-Hesketh, were the subject of a case before the Insolvency and Companies Court in London.
They owed an undisclosed sum to HM Revenue & Customs.
Insolvency judge Sally Barber confirmed the compulsory winding up of six of the group’s companies.
The remaining entities went into creditors’ voluntary liquidation (CVL) so winding-up petitions against them were dismissed, with costs.
The companies which were compulsorily wound up were: Know Hotels Wirral Ltd; Know LTN Ltd; Richmond Apart-Hotel Ltd; LTN Hatton Garden Ltd; Know Health Club Ltd; and Know Eats Ltd.
The businesses which went into CVL were: Know Hotels Chester Ltd; Know Hotels Holdings Ltd; LTN Bold Street Ltd; Know Hotels Liverpool Ltd; Know Restaurants Liverpool Ltd; and Know Property Services Ltd.
A CVL is used to voluntarily liquidate an insolvent company.
In comparison with compulsory liquidation, whereby the closure of the company is forced by a winding up order, voluntarily instigating a CVL allows the directors to retain more control.
A spokesperson Know Group said: “The Know Group previously operated a number of companies under management and lease agreements.
“The businesses underwent hugely challenging times in late 2018 – due to financial decisions around borrowings and a complex group VAT infrastructure being in place – which resulted in problems for directors and unfortunately resulted in numerous CVLs.
“We worked as hard as we could to prevent said CVLs, however, we couldn’t agree a resolution.
“It has been a stressful but educational experience; independent hospitality businesses are sadly more vulnerable to situations such as these and we have learned a lot from the process.”
Last week the Know Group announced that it had been relaunched as Savvy Hotels, following the sale of its non-core assets.
It said it would now focus on the 96-bedroom Sleep Eat Love hostel and the 152-room Richmond aparthotel in Liverpool, as well as the 30-bedroom Townhouse in Chester.
Last November The Know Group announced a raft of new senior appointments which it said followed a period of rapid expansion.
Steven Hesketh said at the time: “It’s a very exciting time for The Know Group, with our slew of recent openings and more opportunities in the pipeline.
“We’re delighted to welcome all our new staff members and are looking forward to seeing how they contribute individually to taking the company from strength to strength.”
He added: “It’s a busy time, but we feel poised and ready for our next ventures and are excited to see each of our brands continue to develop.”
