The Villa’s sister venue shuts its doors

The sister venue of a luxury Lancashire hotel and restaurant which has been put up for sale by administrators has closed its doors and is appointing a liquidator.

The Villa Wrea Green, a picturesque country house hotel dating back to the 19th century, appointed administrators earlier this week.

It is expected to continue trading and welcoming guests as normal as it seeks new investment.

It has now been revealed that The Villa Levens, a 22-bedroom country house near Kendal, also a hotel and wedding venue, has ceased trading.

A statement released by its owners said: “The owners of The Villa Levens have reluctantly closed the business with immediate effect.

“Like many hospitality businesses, the current economic climate has applied a huge strain on the business with increased costs and employment costs which are increasing further from April of this year.

“Whilst every effort has been made to sell the business as a going concern, sadly we have been unable to do so, therefore it has been sold on a closed basis.

“A liquidator will be appointed shortly to deal with all matters, and creditors and employees will be contacted over the next few days.”

The Villa Levens was placed on the market at the end of last year with a reported £2.5m asking price.

For sale signs went up at The Villa Wrea Green after administrators were appointed at the beginning of April.

The Villa Levens and The VillaWrea Green (Image credit: The Villa Levens and The Villa Wrea Green)

Martyn Rickels and Anthony Collier, partners at specialist business advisory firm FRP, have been appointed to lead its administration and sale process.

The award-winning Fylde parkland venue includes a 31-bed hotel, function suites and restaurant.

Administrators say there has been investment in recent years to provide a premium offering to its clientele and it remains an extremely popular destination.

Martyn Rickels said: “The inflationary pressures of recent years have had a significant impact on the cost of doing business, particularly in the hospitality sector which continues to experience legacy financial issues from the pandemic.

“The Villa Wrea Green hasn’t been immune to those pressures, however it remains a fundamentally popular venue with a strong order book for this year and beyond.

“With a strong operations team in place, our intention is to continue to trade the business without interruption as we look to bring in new investment and ownership to take it forward into the future.”

Jayne Taylor, general manager, said: “This is a golden opportunity to secure this magnificent hotel and wedding venue situated in the heart of the Fylde coast.

“My team and I look forward to welcoming both regular and new customers to The Villa in the forthcoming months.”

Both Villa hotels were once part of high-profile Lancashire entrepreneur Simon Rigby’s business empire.

Simon, who passed away in 2020 aged 58, created the Villa Group of companies. He bought the Wrea Green venue in 2010 in a deal reported to be worth £2.1m and carried out extensive renovations. The Villa Levens was converted into a hotel by him in 2014.

Mr Rigby's widow, Linda, is currently listed as the sole director of both hotels at Companies House.

The Wrea Green hotel’s published annual accounts for the year ending December 31, 2023, reported a “drop off in performance” for the venue with turnover reducing by 5.8 per cent.

It said: “The number of weddings fell year on year with costs continuing to increase, predominately on wage costs as the living wage increased further.”