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Management buyout saves Folio Hotel jobs
Lucy Tobin12.01.09
Two of West London's most established hotels have been saved after a management buyout of Folio Hotels has secured 18 properties and 1200 jobs.
The Richmond Hill and Richmond Gate hotels in south-west London, are to remain open after Folio was put up for sale by administrators MCR last month.
The hotel chain had blamed its downfall on a badly timed programme of refurbishments, together with the onerous burden of big rents negotiated at the height of the market.
But today a group of former Folio managers has created a company, Mulbourn, funded by landlords, the management team and private equity. The new company will continue to trade under the Folio Hotels banner.
Hotels involved in the deals include Harpenden House in Hertfordshire, Harte & Garter Hotel, Windsor, and the two hotels in Richmond.
On New Year's Eve administrators said the hotel group Bespoke was taking on 13 of Folio's properties, running them on management contracts.
