Oliver Collinge and James Sleight advise on sale of Lumley Castle.
More than 120 jobs and the future of the 73-bedroom Lumley Castle Hotel have been secured after PKF effected a rescue of the business through Administration after it experienced financial difficulties.
Lumley Castle located in Chester-le Street, Durham was the ancestral home of Lord Scarborough and his family for many centuries. Since the 1980s the property had been traded as a hotel by tenants who established a successful business over the years.
More recently, it became apparent that the trading structure was not sustainable and following ongoing financial difficulties, Oliver Collinge and James Sleight were appointed as Joint Administrators.
Partnering with Bespoke Hotels, Lord Scarborough took back control of the property, which will now ensure that one of the principal hotels in the region continues to be a key destination for guests, weddings and conferences.
Joint Administrator, Oliver Collinge of PKF, says it was a challenging transaction delivered within a short timeframe: “We are delighted to have achieved an outcome which preserves this historic business, providing continuity for all employees and, importantly, ensuring the continuity of the business to facilitate future weddings, events and room bookings.”
The PKF team also included Elizabeth Sapsted and Kirran Gibson. Rob Smithson of Colliers advised on the sale, with Lemi McAuley, Lizzy Wood and Molly Rowell at Hill Dickinson acting for PKF on the transaction.