"Then, as the energy crisis unfolded and supplier costs increased, the company's level of debt reached unmanageable levels and we have taken the reluctant decision to place the company into voluntary liquidation. "The owners of the hotel property, Airth Castle Limited, have advised that the hotel will not be sold as a result of the operating company's insolvency."Īirth Castle Hotel and Spa has 125 rooms and suites, which are located in both the original Castle and the main hotel building.Ī spokesperson for Airth Castle Hotel Limited said: "The coronavirus pandemic had a major financial impact on the operating company, as the hotel was forced to close for an extended period. "The operating company, which does not own the hotel, was incorporated in 2004 to trade as Airth Castle Hotel and Spa and was successful and profitable throughout its 18 years of trading. The hotel building, which is owned by a separate company, is not at risk of being sold as a result of the liquidation, it has been stated.Ī statement seen by the Observer, reads: "The directors of the operating company which manages Airth Castle Hotel in Stirlingshire have made the decision to enter the company into voluntary liquidation. The owners of the operating company said the decision to enter into voluntary liquidation was made as a result of the twin impact of the Covid pandemic and energy crisis. The joint liquidators are assisting former staff to register any claims to the Redundancy Payments Office and access support services from PACE.The bookings of guests and brides at a popular wedding venue are in jeopardy after the company which manages Airth Castle Hotel went into liquidation.Ī statement from Airth Castle Hotel Limited confirmed the news, with 26 full-time staff and other part-time workers set to be made redundant as a result of the move. "After almost 300 years as a coaching inn, we plan to appoint agents to present the hotel for sale in early spring and hope that it will again be able to operate in the hands of new owners." We are currently working with local government bodies to support former employees by ensuring they receive appropriate redundancy advice. "Facing a perfect storm of financial pressures, the directors, in consultation with the business' lenders, made the decision to enter liquidation as the hotel was no longer able to trade. Thomas McKay, partner at Begbies Traynor in Scotland, said: "Like many boutique hotels in small villages, the Lomond Hills Hotel has experienced very difficult trading conditions during the challenging winter season. A survey from PWC Consumer Insights Survey published last month reported that the luxury travel and products are expected to be the hardest hit over the next six months as consumers are ‘holding back' on non-essential spending. The hospitality sector has been severely impacted by the cost-of-living crisis, seeing a downturn in trade as people have cut their luxury spend. Consumers are keeping an eye on every penny. "We do try and keep positive, but there are so many things that are being thrown down upon us and the hotel's closure is a sign of the times. Stephen Montgomery, spokesperson for the Scottish Hospitality Group, said: "This closure further demonstrates that without government intervention and support to help us through current issues like the energy crisis, this is what the sector is facing now. The hotel, restaurant and bar has been closed and 17 members of staff have been made redundant. Insolvency practitioner Begbies Traynor has been appointed as joint liquidator for the venue, which traded under the name of Highlander Hotel Ltd. The 24-bedroom hotel in Cupar had been trading for almost 300 years and was a popular venue for weddings and events, however a drop in occupancy, combined with cash flow issues caused by the Covid-19 lockdowns, made the business unviable. The closure of the historic Lomond Hills Hotel in Fife following challenges related to the cost-of-living-crisis and Covid-19 has prompted a warning that more venues will follow without further government support.
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