20 staff at Auckland House in Shanklin have been made redundant just a week before Christmas following the collapse of the Carlauren Group, with administrators today (Thursday) announcing the closure of the hotel.
Quantuma and Duff and Phelps have taken over the Carlauren Group after being appointed joint administrators at the end of November. They are investigating where over £50million of investor’s money has gone. This includes money invested in the Carlauren-owned Ocean Hotel in Sandown, which now sits derelict.
The decision has been taken to close 3 hotels with immediate effect; the Auckland House Hotel, Headway Hotel in Morecambe and Lambert Manor (main hotel only) in Cumbria.
Carlauren Group took over the Auckland Hotel in 2017 under the banner of The Care Home Group.
Carl Jackson, managing partner at Quantuma, has said:
“We were appointed joint administrators on November 28 and have been working tirelessly to stabilise the position of the group.
“With regret it has been necessary to make the difficult decision to close three of the Heritage Hotel properties.
“The seasonal nature of these properties means heavy trading losses are forecast for the first quarter of the year, meaning any profits made elsewhere in the group would be negated.
“Our immediate priority is to ensure those affected receive the appropriate support required to make the necessary claims from the Redundancy Payments Service.
“We will be closely managing the group’s trading position and will possibly seek to take steps to reopen some or all these properties as appropriate in due course.
“In the meantime the remaining properties in the group will continue to trade, securing the ongoing employment of the remaining 200 staff.”