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 Man taken to hospital after cardiac arrest at beach
- 2 Risk of flooding in parts of region as storms slowly move in
- 3 Trains cancelled due to flooding - and more heavy rain expected
- 4 Incredible aerial photos show scale of Latitude Festival
- 5 Never mind the limo - aspiring farmer rides tractor to prom night
- 6 Joy and relief as Latitude passes off successfully
- 7 Norwich Bus Station building closed due to Covid ping
- 8 Former hunting lodge for sale for £1.695m with huge lake
- 9 More storms ahead as flood warnings remain in place
- 10 Eagle-eyed plane spotter saves pilot's life
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