TRAVELODGE, the budget hotel group battling to avoid administration as it struggles under £500 million of debt, is understood to be weighing up a company voluntary arrangement (CVA) as part of its financial restructuring talks.
However, sources close to the negotiations yesterday rubbished a report claiming that, as part of a CVA or any administration, hundreds of jobs would be at risk and dozens of hotels would be sold. One source said: “No hotels will close or jobs go as a result of this.”
Travelodge, which has 500 hotels in the UK, is understood to have appointed KPMG to advise on its options, which include a CVA, an injection of new equity, a refinancing or some combination of all three.
The chain is owned by Dubai International Capital, which bought it for £675m from private equity firm Permira in 2006.
Neither Travelodge or KPMG would comment yesterday.
