Travelodge gone into CVA!

7
Posted 3rd Jun 2020
3rd June 2020

Dear customer,

Update from Travelodge

As a valued customer of Travelodge, we are contacting you today because you have a booking(s) with us or a voucher(s) or have credit to use for a future booking at our hotels.

As part of our Covid-19 recovery plan, we have today launched a legal process known as a company voluntary arrangement, or CVA. The aim of the CVA process is to allow us, subject to the agreement of our creditors, to manage our rent payments at certain hotels.

This process does not affect you, and bookings, vouchers, or credit will continue to be honoured in line with our standard booking terms and conditions travelodge.co.uk/abo…ons, and the associated vouchers and credit terms and conditions.

The CVA is also not expected to have any impact on your stay, whether in a hotel currently open for key workers and vulnerable groups or in a hotel that is expected to re-open from early July subject to the Government lifting the current restrictions.

However, as you have an outstanding booking(s), voucher(s) or credit with us, you are entitled to vote in the CVA, if you wish to do so. More detail can be found here in a letter from Deloitte, who are overseeing the CVA, which includes information on the CVA proposal and how you can vote, if you wish to do so.

We are confident that a CVA is the best way to secure a sustainable future for Travelodge over the long-term.

We’d like to thank you for your continued loyalty and support through these challenging times, and we look forward to welcoming you back to our hotels soon.

Travelodge
Community Updates
7 Comments
Does this mean it’s going into administration?
I had the email as well. I don’t think they have gone into administration (yet). I think they are just trying to find a way to reduce their rent otherwise they may go that way.
LucindaP03/06/2020 18:30

Does this mean it’s going into administration?


That is the next step.
This CVA will be unlikely to lead to administration. Travelodge are taking it out solely to cut rents at the expense of landlords (majority of which are smaller than the company). They are taking advantage of the COVID-19 situation, after previously refusing to pay rents they are trying to get massive discounts until end of next year. The business may not be getting many bookings now but it is financially stable enough not to need a CVA yet, I would vote against it (and imagine the majority of stakeholders will do the same).
jamie1503/06/2020 23:17

This CVA will be unlikely to lead to administration. Travelodge are taking …This CVA will be unlikely to lead to administration. Travelodge are taking it out solely to cut rents at the expense of landlords (majority of which are smaller than the company). They are taking advantage of the COVID-19 situation, after previously refusing to pay rents they are trying to get massive discounts until end of next year. The business may not be getting many bookings now but it is financially stable enough not to need a CVA yet, I would vote against it (and imagine the majority of stakeholders will do the same).


Why would stakeholders vote against something that will save the business money? Surely that would damage said stake
donny126604/06/2020 00:12

Why would stakeholders vote against something that will save the business …Why would stakeholders vote against something that will save the business money? Surely that would damage said stake


Shareholders would vote for it, but other stakeholders (the landlords) don't want the business to save money through paying them less rent. The business is not close to going under at this stage, it would survive without CVA (paying the fairer reduced rates already offered by landlords).
Edited by: "jamie15" 4th Jun
jamie1504/06/2020 00:41

Shareholders would vote for it, but other stakeholders (the landlords) …Shareholders would vote for it, but other stakeholders (the landlords) don't want the business to save money through paying them less rent. The business is not close to going under at this stage, it would survive without CVA (paying the fairer reduced rates already offered by landlords).


But if their competitors get discounts, it wouldn't help.
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