Travelodge restructures business after £350m sales drop in lockdown
PUBLISHED: 07:52 04 June 2020 | UPDATED: 17:09 04 June 2020
Budget chain Travelodge, with outlets across Norfolk, has restructured to secure the future of its 10,000 staff and 584 hotels.
The company confirmed it is filing a Company Voluntary Arrangement (CVA) deal to secure £144 million worth of rent cuts.
It comes after fraught talks between the hotel firm and its landlords through the coronavirus crisis.
Travelodge closed all its hotels to the public on lockdown in March and said it will take a £350 million hit to sales as a result of the outbreak.
Travelodge has refused to pay its landlords for the three months to March.
But landlords have accused the company of using the pandemic as an opportunity to cut its debts at their expense.
Travelodge’s proposal would pay £230 million worth of rent to landlords for this year and next - roughly half its annual bill.
Unlike some other CVA proposals, the move does not require permanent rent cuts or the closure of any hotel sites.
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