Wednesday, 21 January 2009

Folio Hotels Buyout

A management buyout will secure more than a hundred jobs in Oban and Ballachulish. after the parent company, Folio Hotels, went in administration in December as a result of financial problems arising from a mix of high rents and costs of a refurbishment programme prior to the start of the economic downturn.

A new company Mulbourn Ltd has taken over the management of The Caledonian, Isles of Glencoe and Ballachulish hotels, and they will continue to trade under the Folio Hotels banner.

Stewart Walker, general manager of The Caledonian Hotel in Oban, told the Oban Times: "It's good news that an agreement has been reached and it is very much business as usual as far as we are concerned. We will be honouring all the bookings that we have in the pipeline."

His colleague, Martin McIlrath, manager of The Ballachulish Hotel, said: "There is no doubt that trading conditions will be tough over the next few months, however, we are certain we are well poised with two excellent hotels in great locations to combat the current downturn in the economy."

Mulbourn Ltd's managing director Matthew Welbourn and finance director Alan Murray, who held similar roles in the previous company, are joined by 13 former senior managers who have taken a stake in the new firm.

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