Cleaning and outsourcing businesses Hotel Solutions London and Totally Clean Solution have gone into administration.
Jason Baker and Geoff Rowley, partners at the restructuring, recovery and insolvency firm FRP Advisory, have been appointed joint administrators.
Based in Wembley, Middlesex, the two businesses hold contracts with hotels and shops nationwide, delivering a range of cleaning, front-of-house and catering services.
Together they employed around 1,400 staff. At this stage, the administrators do not anticipate making redundancies and are committed to continue paying the staff.
The companies had accrued large arrears of HMRC debt of around £2m. The decision was taken to enter administration with a view to saving the businesses by selling them as going concerns.
Baker said: "The situation is regrettable, but we very much hope to find a purchaser for the businesses as going concerns to provide continuity of service to the companies' clients and help secure a future for the employees. We plan to fulfil the payroll that is due this week to staff at the two companies."
Employees with any concerns should contact the dedicated freephone helpline on 0808 126 1875, while interested parties in Hotel Solutions London Limited and/or Totally Clean Solution Limited should contact Andrew Cranmer at FRP Advisory on 020 3005 4014 or by e-mail at firstname.lastname@example.org.
By Janet Harmer
E-mail your comments to Janet Harmer here.
Looking for a new job? Find your next job here with Catererandhotelkeeper.com jobs
Blogs on Catererandhotelkeeper.com
Catch up with more news and gossip on all Caterer's blogs
For the latest hospitality news, sign up for our E-newsletters