Travelodge chain agrees debt deal
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Hotel chain Travelodge has agreed a deal to cut its debts substantially, which it says will secure the long-term future of the business.
Some £235m of bank debt will be written off, the firm said, reducing the total to £329m. It will also have longer to pay off remaining debts.
Three major investors will also inject £75m into the firm.
Travelodge also wants to find new operators for 49 hotels and pay less rent on 109 more.
It said it would work with its landlords to try to find new operators for the hotels, in the hope of avoiding job losses.
Those changes to the hotels are proposed as part of a Company Voluntary Arrangement (CVA), which has to be agreed by at least 75% of its creditors, which include landlords, suppliers and staff.
The struggling chain said there would be no changes to 347 hotels in the restructuring deal, the majority of its 505-strong estate.
Travelodge's chief executive Grant Hearn said it was now in a much stronger financial position as a result.
This new appropriate level [of debts, interest payments and rental costs] will provide greater security for our staff, suppliers, landlords and developers," Mr Hearn said.
"This is a successful brand with millions of customers and the company will emerge in excellent shape from this process."
Some of that money to be injected by its major investors will go into refurbishing 175 hotels, starting next year.