Two Ross-shire hotels are to close due to the “devastating” impact of coronavirus.
Hart Hotels Limited has announced it will wind up the Garve Hotel and Mackay’s Hotel – both popular stop-offs on the NC500 – “over the next few months” unless a buyer can be found.
The Glenmorag Hotel in Dunoon is also expected to close.
In a statement, the operators said: “The ongoing coronavirus crisis has had a dramatic impact on all business sectors but especially within travel and tourism.
“At present it is impossible to establish when hotel operations will return to normal operating capacity.
“The directors of Hart Hotels Ltd have been carefully considering these matters and have made the decision, in the absence of acquisition from interested parties, to wind up the hotel businesses in an orderly manner over the next few months.”
An application to the Court of Session to enter into a creditors voluntary arrangement (CVA) has since been lodged by Johnston Carmichael.
The statement continued: “This is not a decision which has been taken lightly.
“Our hotel company has welcomed loyal customers for many years to the Cowal peninsula and to the Highlands and has been a prominent figure within the Scottish leisure and hospitality industry.
“However, we have to be responsive to the significant challenges the company would face if we were not to take decisive action.”
Councillor Ian Cockburn said the closures would be a blow to the community, adding: “This is just terrible news for two prominent hotels in the Ross-shire area.
“Both are very important to the local tourism and now leave two large gaps if a potential buyer doesn’t step forward.
“I fear it could be the start of an economic downturn in the area with a lot more decline to come.”
Hart Hotels Limited has started to contact suppliers and customers with information regarding the CVA Proposal and the process to register payments due or refunds being
“The directors of Hart Hotels Ltd have been carefully considering these matters and have made the decision, in the absence of acquisition from interested parties, to wind up the hotel businesses in an orderly manner over the next few months.”
An application to the Court of Session to enter into a creditors voluntary arrangement (CVA) has since been lodged by Johnston Carmichael.
The statement continued: “This is not a decision which has been taken lightly.
“Our hotel company has welcomed loyal customers for many years to the Cowal peninsula and to the Highlands and has been a prominent figure within the Scottish leisure and hospitality industry.
“However, we have to be responsive to the significant challenges the company would face if we were not to take decisive action.”
Councillor Ian Cockburn said the closures would be a blow to the community, adding: “This is just terrible news for two prominent hotels in the Ross-shire area.
“Both are very important to the local tourism and now leave two large gaps if a potential buyer doesn’t step forward.
“I fear it could be the start of an economic downturn in the area with a lot more decline to come.”
Hart Hotels Limited has started to contact suppliers and customers with information regarding the CVA Proposal and the process to register payments due or refunds being claimed. If you have not received any correspondence, e-mail finance@davidurquhart.com with details of the claim.