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Resort founder steps down

John Shepherd
Tuesday 08 March 1994 19:02 EST
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ROBERT FELD has resigned as a director of Resort Hotels, the company he co-founded with his parents 22 years ago.

His departure yesterday came nine months after he relinquished his 10-year post as managing director, and coincided with 1993 results showing a pounds 71.1m pre-tax loss.

There were administrative expenses and write-offs of pounds 33m and property writedowns of pounds 38m. A further pounds 23m has been written off against money owed from managed companies, leaving Resort with negative equity of pounds 18.5m.

John Bancroft, chairman of Resort's shareholders' action group, said: 'The accounts reflect the serious financial position of the company. I would expect the remainder of the board to offer their resignations at the time of the restructuring.' Talks with banks have been continuing since dealings in Resort's shares were suspended at 45p last April.

Mr Feld said: 'Given the size of the property writedowns and the consequential loss, I felt that this was the only course of action.'

He said his resignation was also designed to ensure that 'the main focus is to put in place the reconstruction to secure the long- term future of the business'.

Resort had already taken legal steps to unseat Mr Feld from the board. Both parties have agreed to a three-month moratorium on legal action while the company tries to negotiate a reconstruction.

Mr Feld's move follows the departure of Tim Barker, deputy chairman, and the resignation of Barclays de Zoete Wedd as the company's financial advisers shortly before Christmas.

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