Selina Operations Australia et al - Voluntary Administration

Selina Operations Australia et al, the Australian arm of London-based global hospitality group Selina Hospitality (NASDAQ:SLNA), which entered administration in the UK on 22 July, has itself entered voluntary administration.

The budget hotel operator offered backpacker-style accommodations at more than 100 sites internationally, including across four Australian properties — two in Melbourne, one in Brisbane and one on Magnetic Island near Townsville.

Selina had assured customers that the Australian sites were among the group’s most profitable and would not be impacted by the collapse of the parent, partly because the Australian companies weren’t wholly owned by the UK parent, with a share having been sold to Osprey International last month.

Unfortunately, this has not proven to be the case, as Matthew Levesque-Hocking and Todd Gammel of HLB Mann Judd were appointed voluntary administrators of Selina Operation St Kilda (in Melbourne), Selina Operation Brisbane, Selina Operations Australia and Selina Holding Australia on 8 August, while Andrew McCabe and Chris Johnson of Wexted Advisors were appointed voluntary administrators of Selina Operation Magnetic Island (near Townsville) on 13 August.

Secured lender Dorado Capital, owed approximately $5.7 million, has appointed Liam Healey and Quentin Olde of Ankura as joint receivers.