22/03/2011 - 11:11

Perth hotels owner in receivership

22/03/2011 - 11:11

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Compass Hotel Group, which operates 12 hotels and bottle shops across Perth, has gone into receivership after struggling for three years under heavy debt.

Perth hotels owner in receivership

Compass Hotel Group, which operates 12 hotels and bottle shops across Perth, has gone into receivership after struggling for three years under heavy debt.

Quentin Olde, Ian Francis and Michael Ryan of Taylor Woodings have been appointed receivers and managers of the listed company.

The portfolio of hotels they assume control of include the Penninsula Tavern, Albion Hotel, Peel Alehouse and Kalamunda Hotel.

Taylor Woodings partner in charge Quentin Olde said employees working at the hotels would not be affected by the appointment of receivers.

"The group's hotels and bottle shops will continue to operate on a 'business-as-usual' basis," he said.

"Individually they are high quality assets and operationally remain unaffected by our appointment.

"As receivers we will now assess the financial position of the Group and its assets, and will investigate opportunities for their sale in the future."

Earlier this month, Compass reported a half-year loss of $3.4 million and acknowledged its businesses needed extensive refurbishment to remain competitive.

It said the loss was mainly due to writing off $5.1 million in asset values due to falling prices in Perth's property market.

Compass listed on the ASX in January 2008 after its debt-funded purchase of the hotels.

The company has delivered poor trading results since listing and gone through multiple board changes.

Its current directors include Perth hotelier Chris Brockwell, who joined the company as part of efforts to lift its performance.

 

 

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