Thu, 12 Jan 2023 | ADMINISTRATION
Two hotels in Callander, Stirling are to be put up for sale after their owner, Mountview Hotels, fell into administration. The Crags Hotel and Abbotsford Lodge ceased trading at the end of December 2022 after running into unsustainable cashflow problems.
FRP Advisory partners Michelle Elliot and Stuart Robb were subsequently appointed as joint administrators of Mountview Hotels with all four remaining staff made redundant. The administrators will now seek to market the hotels for sale and have urged interest parties to make contact as soon as possible.
The Crags Hotel is a Victoria property in the centre of Callander and comprises nine rooms, a restaurant and bar. Abbottsford Lodge, situated on the outskirts of the town, features 15 rooms and a restaurant. Callander, which is located to the east of Loch Lomond and the Trossachs National Park, has established itself as a popular stop for tourists travelling to and from the Scottish Highlands.
In a statement, the administrators said: “The hotels have historically traded well, however, have been severely impacted in recent months by a significant increase in operating costs and the impact of historical liabilities incurred during the COVID-19 pandemic, leading to unsustainable cash flow problems. Both hotels ceased trading at the end of December prior to the administrators’ recent appointment.”
Joint administrator Michelle Elliot added: “The Crags Hotel and Abbotsford are well known venues within the popular tourist destination of Callander and which have both been recently refurbished to a high standard.”
“Unfortunately, having explored all its options, the company was unable to survive the fall in revenue coupled with the significant increase in fixed costs over recent months. We will now focus our efforts on assisting employees to submit their claims for redundancy and other sums due to them whilst preparing to market and sell the hotels.”
In its most recent reports, for the year to June 30 2021, Mountview Hotels’ fixed assets were valued at £1.1 million and current assets at £180,532. At the time, the company’s net assets were valued at £46,638.
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