Travelodge restructures business after £350m sales drop in lockdown
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.
You may also want to watch:
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.
- 1 Builder took pink pill and ran naked around hotel
- 2 Fire tears through historic Thorpe pub
- 3 Four national high street names to move into former M&S store
- 4 Store open despite positive Covid test at town centre Sainsbury's
- 5 Mass coronavirus vaccination centre opens in Norwich today
- 6 Stunning images capture Cromer in the snow
- 7 Vandals leave £80,000 trail of destruction in car park
- 8 PM warns there will be no 'open sesame' lockdown exit
- 9 Norfolk to get rapid Covid test sites - to find people without symptoms
- 10 First patients receive Covid jabs at Norfolk's new mass vaccination centre
Unlike some other CVA proposals, the move does not require permanent rent cuts or the closure of any hotel sites.
For more updates on coronavirus see the Facebook page here