Fashion Week caught in Westin hotel stoush

Workers protest Westin hotel job cuts

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Fashionistas attending Air New Zealand Fashion Week may be forced to find new accommodation after a stoush involving receivers for the official hotel to the event - the Westin Auckland Lighter Quay - closed over half the hotel.

The upmarket hotel, opened in 2007, hosted last year's fashion week fan-favourite Pamela Anderson and football star David Beckham.

But despite its high profile guests the hotel has been in the media mostly due to its financial troubles.

The hotel's management company, owned by Westin developer Nigel McKenna, was placed in receivership by major creditor the Bank of Scotland in July, owed $16.5 million.

But the bank wasn't the only creditor left out-of-pocket. About 100 investors - many of the Asian - bought units in the hotel and leased them to the management company for guaranteed rental payments.

After the payments ceased, some of these investors successfully applied for a court order handing them control over the units.

Despite both the receiver, KordaMentha, and the investors, claiming they want to keep the hotel operating at full capacity the failure of the two sides to reach an agreement over the hotel's management has seen the rooms closed and 99 staff facing redundancy.

Investors made an indicative offer to purchase the assets controlled by KordaMentha which was rejected by the receiver.

A statement from the receiver, Michael Stiassny, says 77 of the hotel's 170 rooms will remain open while an investor spokesman, Graham Wilkinson, has less than 60 units operating after more than 110 rooms were closed.

What also remains unclear is the affect this will have on Fashion Week, taking place September 21-25.

The Westin is one of six elite sponsors alongside Air New Zealand and Westpac and is the official hotel of the event, a sponsorship deal it has held for three years.

Fashion Week is still marketing a VIP Privilege Plus at the Westin Package - which costs $395 and includes accommodation in a superior room at the Westin where guests will "escape to a realm of relaxation and rejuvenation", welcome cocktails on arrival and complimentary valet parking.

A press release from the Westin says it is "once again proud to be the home of fashion and style".

But with investors alleging the receiver may prevent them accessing "their property" and may switch off power to the rooms, while the receiver claims investors have not tabled a "reasonable" offer to keep the rooms open - an end to the deadlock may not be near.

- © Fairfax NZ News