Room Mate, Kike Sarasola’s hotelier, went bankrupt after years due to ‘technical bankruptcy’

This was reported by the company itself in a statement:

“Room Mate submitted to the Dean of Madrid Commercial Courts this morning a request for voluntary bankruptcy with the sale of a manufacturing unit, together with a binding offer by an investor proposing business continuity and continued business”.

The competition exclusively affects Room Mate SA, not other companies in the group.

The hotel chain continues, “handles this procedure in this way in order to guarantee the sustainability and continuity of its commercial activity.“.

During the duration of the process, the event will occur in “complete normality”.

It was in a state of “technical bankruptcy” for some time.

Room Mate attributes the presentation of the competition to the bad economic situation that caused the competition. the pandemic in the tourism industry and disagreements with investor Sandra Ortega, Amancio Ortega’s eldest daughter. Ortega has supported Room Mate for years through family office ROSP Corunna.

But Room Mate has had a lot of practice with technical bankruptcy. Even in 2019, a year before the pandemic and a record number of tourists in Spain, the company suffered losses. Net worth has been negative for over a decade, a condition known as “tech bankruptcy.”

Ortega filed three complaints with the former executive of ROSP Corunna for forging his signature in favor of Room Mate. These were finally filed by the judge.