This week's Leamington Courier front page...

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This week's Leamington Courier front page...

Postby dutchman » Fri Jan 20, 2012 5:13 pm

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FOUR more businesses have gone into administration in Leamington leaving more than 40 jobs on the line.

Koko’s nightclub and the adjoining Shakespeare Inn pub, on the corner of Warwick Street and Tavistock Street, along with TJ’s Bar and Bistro and the Thomas James Hotel in Bath Street are all in the hands of corporate advisory and restructuring specialists Zolfo Cooper.

The hotel, bistro, pub and nightclub chain are all owned by businessman Gursh Atwal and form part of Mood Bars (UK) Limited. Mr Atwal denies that his revenues dropped. Instead he blames an interest rate swap scheme sold to many hotel, pub and restaurant businesses which he says led to crippling repayments in excess of £15,000 a month on top of his mortgage.

All four separate businesses will continue to trade as normal while the London-based Zolfo Cooper search for potential new owners.

Mr Atwal is taking legal advice about what to do next.

But he believes his businesses were driven over the edge by a complex financial package dating back to 2007 when he was looking to expand.

Ryan Grant, one of the advisers, said: “Mood Bars had been unable to avoid entering administration after getting into a financial position where they were unable to pay their creditors when they fell due.

“Following our appointment, we will continue to trade the various businesses while we conduct a thorough review of the company.”

Mr Grant thanked all 43 staff employed by Mood for their “continued professionalism” during the process of seeking a new buyer or buyers.

Last week three shops in the town’s Royal Priors shopping centre went into administration while Past Times on the Parade closed and Blacks outdoor clothing and camping chain was likely to be taken over by JD Sports.

Despite this, shopping centre manager Garry McManus said Leamington was weathering the recession storm better than most other towns.

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