UK’s second biggest hotel chain, Travelodge might have to shut 150 of the chain’s worst performing hotels in the country under a new £ 1billon deal designed by Goldman Sachs.
The indication has sparked fears among the company’s 6000-strong workforce as Travelodge might cut almost 2,000 jobs in the process. Goldman is leading a group of several finance houses that has now taken control of Travelodge.
Travelodge chain, which was earlier owned by the Dubai International Capital, has a huge debt burden over itself. The company has been providing employment in difficult times and it has taken part in the Government’s Job Centre Plus Scheme. Now it might be asked to reverse hiring and let go about a third of its workforce.
The company has confirmed that it has plans to offload leases on 49 troubled hotels and it has also asked landlords at 109 of its hotels to reduce rents. It is believed that there is unlikely that the company will find buyers for 49 sites meaning that people working on the sites might left without jobs.
Travelodge said that it has agreed to a company voluntary arrangement to prevent the firm from collapsing.
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