Hahndorf motel The Lodge sold after operators sent into administration over $4.6m debt and unpaid staff entitlements
An Adelaide Hills motel has been banned from booking.com and put up for sale after its operators were placed into administration owing $4.6m.
A worn-out Hahndorf motel is being “urgently” sold after more than $4.6m in unpaid debts and staff entitlements forced its operators into administration.
The Lodge, an 18-room motel at the popular tourist town, was the last site still being run by The Manna Group after landlords evicted the tourist accommodation company from two other Hahndorf sites earlier this year.
An administrator’s report said the company, registered as Whitlowe, was directed by Angela Lowe – but its operations were primarily overseen by her spouse David Whitaker, who acted as the “shadow director”.
The report said superannuation was owed to 18 employees, and annual leave and long service entitlements to nine employees, while some employees had resigned because of unpaid entitlements.
Administrator Lindsay Bainbridge said in his report Whitlowe may have continued trading while insolvent from at least November 2023.
Landlords booted the business from The Studio in April over $70,000 unpaid rent, and from The Manna in March over $59,000 unpaid rent and outgoings.
Mr Bainbridge told The Advertiser the company’s directors were “first-time hospitality operators”.
“It does talk to the fact that hospitality can be tough – it’s a tough business if you’re not experienced,” he said.
“But I do think that a hospitality group or somebody experienced could potentially grab this location (The Lodge) and do something pretty special with it.”
Mr Bainbridge’s report said the business owed more than $4.6m to creditors, including more than $3.1m to Judo Bank for a business loan and line of credit.
Administrators have been operating The Lodge, with assistance from Mr Whitaker, since it entered voluntary administration last month.
The report said The Lodge could only take bookings through its website because it was banned by booking platforms such as booking.com and Expedia over unpaid commissions – which has “significantly impacted the company’s trading performance”.
It said Mr Whitaker “believes the repossessions of The Studio and The Manna may have been unlawful”.
A McGees Property ad last week sought “urgent” expressions of interest to buy The Lodge, which comes with a lease until 2049.
“It’s a little bit worn and outdated – it’s a blank canvas for anyone that wants to come in and spend a bit of money,” Mr Bainbridge said.
Mr Whitaker told The Advertiser the administrator had uncovered “inconsistencies in regards to figures provided to us for our initial due diligence, as well as the valuation on which we based our decision to purchase”.
“Our group has through this period made every effort to maintain and grow the company, as well as keep all employees on board – however, the conduct of some of the landlords, among other pressures such as a sudden rise in costs, made it increasingly difficult to maintain,” he said.
Mr Whitaker’s LinkedIn says he is managing director of Key Idea Capital, where he helps businesses access funding, offering “introductions to both debt and equity based solutions”.
Key Idea Holdings, directed by Mr Whitaker, entered administration at the same time as Whitlowe.
More Coverage
Originally published as Hahndorf motel The Lodge sold after operators sent into administration over $4.6m debt and unpaid staff entitlements
