A troubled iconic Moray hotel re-opened its doors yesterday – but only on a limited “bed and breakfast basis” with pre-booked weddings and functions not being honoured in the meantime.
Trading at the plush Mansion House Hotel and Country Club in Elgin was suspended by accountants earlier this month after being declared bankrupt over a £90,000 tax bill.
A temporary management team was recruited by bank – and secured creditor – Santander to allow it to re-open while attempts to find a new buyer continued.
Yesterday, a spokesman at the hotel would only confirm: “We have re-opened but it is not business as usual.
“We have opened purely on a bed and breakfast basis. There is no bar, no restaurant and no leisure centre open.”
Asked if any pre-booked functions would now go-ahead, he responded: “We are only open for bed and breakfast.”
However, it is hoped the temporary management will be a short-term fix, as several potential buyers have already expressed an interest in the upmarket hotel and country club, a baronial mansion set on the banks of the River Lossie.
The Scottish Government’s Accountant in Bankruptcy (AIB) confirmed the business had reopened yesterday on a “reduced service basis”.
He added that discussions were in place with “a number of interested parties” in a bid to find a new owner, but these were at an early stage.
Elgin councillor Graham Leadbitter said: “Clearly this temporary measure is welcome news so the business can keep going until a buyer can be found.
“The Mansion House is an iconic building in a fantastic location with excellent potential.”
The hotel’s official Facebook page said the temporary measure would hopefully “provide a period of comprehensive marketing to be undertaken for the sale of the business/hotel”.
Two weeks ago, when the current owner David Baker was taken to court over the unpaid tax bill, he said the business had suffered after it was closed between 2011-13 to allow Moray Council to build flood defences nearby.
He claimed bookings had dropped by 20% a year since the closure.