The owner of the Malmaison and Hotel du Vin hotel chains is set to call in administrators amid debt problems.
Shares have been suspended in MWB Group Holdings after it announced its intention to appoint two insolvency practitioners at Deloitte as joint administrators.
In a statement, the group said it had failed to find a resolution to ongoing debt issues with a subsidiary company – services offices firm MWB Business Exchange.
It states: "Despite ongoing dialogue, there has not been a satisfactory resolution to the issues set out in the announcement and the uncertainty over potential cash receipts remains. Consequently, and in the absence of any other available facilities to the company from its existing lenders or elsewhere, the company is, or will shortly be, unable to meet its liabilities as they fall due and the board of the company has therefore concluded that, in such circumstances, the appointment of administrators is the most appropriate course of action."
The group said MWB Malmaison Holdings and its subsidiaries, which together own and operate the Malmaison and Hotel du Vin hotel chains, and MWB Business Exchange and its subsidiaries are not being placed in administration and are expected to continue trading normally.