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Hotel gone into administration - advice please!
CM66
Posts: 602 Forumite
Had a call from my sister to be last night telling me their venue for the reception has gone into administration! There wedding is 5 weeks on Saturday so you can imagine they were going crazy with worry. 
They have had a letter from the administrators to say that as they have paid a deposit they agree to carry out the contract as per the original agreement (subject to the balance being paid) and if any other business takes over the hotel in the meantime, they will also be contractually obliged to fulfil their contract.
My main worry is that if they paid any money, this would just be taken by the administrators to pay off bad debts and not actually used for their wedding. I have said if they do decide to pay they must do it by credit card to get the extra cover. Would section 75 still apply in this situation?
So really just after advice if they should be calm and beleive the administrators promises or start looking for another venue?!
Clare x
They have had a letter from the administrators to say that as they have paid a deposit they agree to carry out the contract as per the original agreement (subject to the balance being paid) and if any other business takes over the hotel in the meantime, they will also be contractually obliged to fulfil their contract.
My main worry is that if they paid any money, this would just be taken by the administrators to pay off bad debts and not actually used for their wedding. I have said if they do decide to pay they must do it by credit card to get the extra cover. Would section 75 still apply in this situation?
So really just after advice if they should be calm and beleive the administrators promises or start looking for another venue?!
Clare x
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Comments
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First thing first, have they got wedding insurance?
If so, they should contact them and get advice.0 -
I would also maybe ask on one of the other boards that is more about consumer advice as I'm sure there are experts there.
Hope she's got insurance.Virtual Sealed Pot Challenge #148 - £59.93
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i would say check about wedding insurance
and also if they have to keep orginal contracts then she should be ok
has she been in to chat with them?Is a married woman!! 23rd July 2011 Best day of my life!
TTC first baby Jan 20130 -
Thanks for all your replies! Dispite me telling them so many times, they never took out insurance :eek:
They have a meeting with the hotel today, so will see what they say. I'm just more concerned that if they pay any more money the administrators will say thank you very much, and by the way your wedding is cancelled!!
Just wondered if anyone else had faces a similar situation?0 -
ohh not good that she didnt take insurance- this is the exact reason why ppl should!
hopefully the meeting with them will shread some light on the issueIs a married woman!! 23rd July 2011 Best day of my life!
TTC first baby Jan 20130 -
Administrators are brought in to run the business either until a buyer can be found or failing that until it is deemed they can not obtain any more money for the creditors , and a time scale is normally given ( around 10 weeks? ) . If the administrators say the wedding can still go ahead , then it will . They cannot take any further payments and not provide the serviceVuja De - the feeling you'll be here later0
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DO NOT WORRY
Our venue went into administration over 6 months before our wedding! They were still in administration when we got married, and actually have now been bought.
No weddings were affected and there was no difference whatsoever. Its natural to panic - I cried! But actually the administrators running it is no bad thing at all. Tell them to talk to the hotel, let them put their worries at ease and not to worry any further xxx:heart2: Got Married on 30/4/11 :heart2:
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