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Daily Mirror
Daily Mirror
Business
Emma Munbodh

Travelodge enters crisis talks with 10,000 jobs and 564 hotels at risk

Travelodge is set to launch a radical overhaul of its business on Wednesday, in a move that could place more than 10,000 jobs at risk.

The beleaguered travel company will unveil a formal restructuring plan that will argue the fate of its 564 hotels.

Travelodge's company voluntary arrangement (CVA), managed by Deloitte, will reportedly include a £40million cash injection from its shareholders, plus £100million from debtors.

The restructuring will come just weeks after the company asked landlords for £140million worth of rent cuts.

Travelodge, which is part-owned by Goldman Sachs, shut 564 hotels on March 24 when the lockdown began.

It's already said hotels will be very different when they re-emerge from the crisis - with social distancing a key concern.

"Covid-19 has changed everyone’s lives and we've all been forced to adapt forced to adapt to a new way of working and living", Brett Freestone, who manages Leicester's Central Travelodge branch told LeicestershireLive.

His branch is one of several that have remained open during lockdown to help support keyworkers.

The 32-year-old said the Covid-19 lockdown has presented some "unique challenges".

"We all have to adapt according to the Government guidelines and carve out a normality that puts safety at the heart of our business for staff and our customers," he said.

Staycations are currently banned in the UK (Getty)

"We hold a daily team briefing communicating the importance of social distancing, regularly cleaning your hands and keeping on top of all cleaning and sanitising public areas within the hotel.

"We've had Perspex screens fitted onto the reception desk and added safe distance markings so that customers knew where to stand in reception and in public areas - and we are also monitoring the number of customers that can check-in at any given time."

Guests in the coming months will notice a number of other changes.

"We have hand sanitisers on the reception desk for customers to use and staff are provided PPE (personal protection equipment) while working in the hotel," said Brett.

"We have also added new signage in all public areas within the hotel, advising customers and staff on the importance of washing their hands and that they have to adhere to the 2m social distance rule.

"As our restaurants are now closed we have also ordered extra supplies of our breakfast boxes, which customers can purchase from reception."

The hospitality sector in particular has been severely hit by the Covid-19 pandemic.

UKHospitality, which represents the sector, has already warned thousands of hotels, restaurants and pubs will not survive the crisis.

It's warned that 1million jobs are at risk without clear guidance from the government on when branches can reopen.

"It will be the last to reopen and we still awaiting instructions from the Government on how we can operate in the future," Brett said.

"But we are a resilient industry and we will come out of this stronger than ever."

Mirror Money has contacted Travelodge for a comment.

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