KZN's Fairmont Zimbali Hotel enters into business rescue
The owners of the luxurious Fairmont Zimbali Hotel announced on Thursday that they have entered into business rescue.
IFA Fair Zim Hotel & Resort Proprietary Ltd said the decision was prompted by the Covid-19 pandemic which “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 affected negatively on our business,” said general manager Wayne Krambeck.
He said the Fairmont Zimbali Hotel, in particular, faced an “unprecedented situation” after 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, 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 board resolved to file for business rescue and appoint Pierre Berrange as the business rescue practitioner.
Krambeck said the business rescue practitioner would formulate a rescue plan and “ensure that the best way forward is found for all stakeholders in accordance with all regulatory requirements”.
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