Revealed: Shut luxury hotel’s long history of financial problems
- Credit: Archant Norfolk 2011
A company behind a luxury hotel, which shut last week leaving wedding plans in disarray, went bust more than two years ago owing thousands of pounds.
Last week Lenwade House Hotel on Fakenham Road said it was closing because it could not pay off all its debts.However, we can reveal the hotel has a long history of financial problems.
A company registered at the hotel, called Lenwade House Hotel Limited, owned by Jane Scrivens, was put into liquidation in May 2017 after failing to pay Broadland District Council money it owed.
The firm was forced into liquidation by a judge after the council petitioned the High Court to wind it up. The firm owed all creditors a total of £60,000 but only had £75 in the bank.
A report from the company's liquidator said they had received claims from people saying they were owed a total of £30,000.
The liquidator's latest report, from September 2019, said there was "no prospect" of creditors getting money back.
It added that the company did not deliberately avoid paying business rates.
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The liquidation in 2017 was the second time that a company registered at Lenwade House Hotel had brought in liquidators since 2013.
In May 2013 a company called Lenwade Limited, owned by the Scrivens family, went under owing £433,000.
Liquidators found the firm had just £300 in assets. The taxman was owed a total of £154,000, while the biggest creditor was Jane Scrivens, owed £250,000 by her company.
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According to the liquidator's report nobody got any money back.
Despite the two previous liquidations, the hotel was able to keep trading until last week and two more companies have been registered at the hotel since 2017.
One was called Renaldy Hotels Ltd which was set up in 2017. The director is Amie Renaldy and Nick Scrivens, husband of Jane, was also a director for three months in 2018.
Mr Scrivens also set up the latest firm to trade from the hotel, called Norfolk Hotel Group Ltd. That company was established in April last year.
The hotel was taken over by the Scrivens in 2010.
Mr Scrivens said he was "deeply sorry" to those affected but would not comment further.