The Fairmont Zimbali Hotel enters business rescue

The Fairmont Zimbali Hotel has announced
that it entered business rescue on Wednesday, the 16th of September 2020
to “safeguard the interests of its stakeholders.”

As the pandemic continues to disrupt local and global travel and
tourism markets, “the consequent stagnation in global economic activity
together with the South African government-imposed National State of Disaster
has impacted negatively on our business
” commented General Manager, Wayne
Krambeck.

The hotel faced an unprecedented situation following the lockdown
and border closures, despite experiencing exponential growth with record
turnover from November 2019 to March 2020.

We have been in support of our President and the government’s
reasons for implementing the initial lockdown period however, the extraordinary
circumstances of a prolonged lockdown now day 176 the longest in the world to
date with limited support from government, has eroded our revenue base. The
losses that will be incurred in a gradual return to normality with ongoing
uncertainty and the possible threat of further restrictions is just not
commercially viable. We have been left with no alternative but to apply for
business rescue
”, he said.

The Fairmont Zimbali Resort is one of the biggest foreign
investments on the North Coast of KZN and it has been a major role player in
the South African hospitality industry with usage from local and national
government, local tourism as well as International visitors.

The Board resolved to file for
business rescue and appoint Pierre Berrange as the business rescue practitioner.
The business rescue practitioner will formulate a rescue plan and ensure that
the best way forward is found for all stakeholders in accordance with all
regulatory requirements. 

All stakeholders and suppliers will be
contacted by the business rescue team to plan the way forward in accordance
with the processes as provided in the Companies Act.

Source: Propertywheel.co.za | https://propertywheel.co.za/2020/09/the-fairmont-zimbali-hotel-enters-business-rescue/

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