North East leisure and care group restructures for PLC status
North East care and leisure firm the Malhotra Group has undergone a major restructuring operation and intends to become a PLC.
The Group, which owns the likes of Scalini’s Restaurants, Newcastle’s Grey Street Hotel, and Osborne’s Bar & Kitchen, have consolidated over 100 properties and numerous businesses under one formal group.
RBS have structured the funding using the Funding for Lending Scheme.
The group restructure has been overseen by Newcastle law firm Sintons, which has worked with the Malhotra Group and its divisions for several years.
The creation of Malhotra Group PLC which employs 1,000 staff, comes at a time of significant progress for the business, particularly in its care and leisure operations.
It is intending to invest £57 million in care and a further £43 million in leisure over the next five years, demonstrating a commitment to the region.
Meenu Malhotra said: “As a family, with my brother Bunty and sons Atul and Varun, we have been working closely with our advisors for two years to bring about the restructuring with the ultimate intention of running all of our businesses and investments under the umbrella of Malhotra Group PLC.
“This is a very exciting time for the Malhotra family and all our divisions. Our achievement and growth would not have been possible without the hard work and loyalty of our dedicated staff. We are also very appreciative of the support from RBS, Sintons and Ernst & Young.
“We are proud to be forging strong links with RBS who in spite of the all the negative publicity are lending to local businesses like ours.”
Martin Greenwood, director Corporate Banking at RBS, said: “The Malhotra Group’s standards of care are unparalleled to most of its competitors in the North East and we were very impressed with the quality of care and the impressive interiors of each home.
“They have an extremely strong business portfolio and we are delighted to be supporting the family as they enter a new period of growth and help Meenu and Bunty secure solid foundations for the next generation of the business with their sons Atul, Varun and Manav.”
Alok Loomba and Christopher Welch, Partners in the Real Estate and Corporate departments respectively at Sintons, oversaw the restructure.
Alok Loomba added: “We have worked closely with the Malhotra Group for a number of years and have seen significant growth throughout the many divisions in their portfolio during that time.
“We are very pleased to be able to assist in the latest stage of their progress, which we hope can support Malhotra Group PLC in achieving their growth aspirations regionally and nationally.”
Gordons acted as legal advisors to RBS. The detailed tax and re-structuring advice was provided by EY (Ernst Young).
Simon Whiteside, director at EY, said: “The reorganisation of the Malhotra Group will deliver significant operational efficiencies and provide a cleaner and more visible corporate structure in the marketplace.”
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