Coniston Hotel goes into administration
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By Emma Grove
The Coniston Hotel has gone into administration with the loss of
almost 60 jobs.
The hotel was just two weeks away from reopening as a four-star
venue when the administrators came in on Tuesday, June 22.
According to owner Chris Richardson, NatWest bank's support for
the project was withdrawn after a re-evaluation of its value as a
building and as a going concern.
Mr Richardson and partner Ernie Berntsen say extra funds were
needed to complete the project.
Before this could happen, the revalutation was ordered and it
came out lower than a previous one at the beginning of the
year.
The two men say they have invested £4 million of their own cash
into the project and borrowed another £4.2m. They plan to complain
about the bank's decision.
He added: "I've got no idea how long before we know if [the
complaint] has been successful but people can be assured we are
pursuing this with our legal team."
The 58 people made redundant are from all departments within the
operational running of the hotel including the bar, restaurant,
reception and house-keeping. Six staff working on the construction
have been kept on.
The news will come as a blow to the town as it was hoped the
hotel would be a boost to tourism.
Mr Richardson added: "The beds are made, the restaurant is laid
out, there is food in the freezers and beer in the bar.
"The staff are absolute gems. Every employee was hand picked and
dedicated, motivated, and just fantastic.
"I'm sorry for the community and all of the staff that have been
involved. We want some answers ourselves - it's not over yet."
An employee, who found out on Tuesday about the job losses, said
many of the staff felt let down.
The staff member said: "This has obviously been going on for
some time - they shouldn't have let us carry on working there. They
should have told us the truth. This was meant to be such a big
thing for the community."
Mr Richardson said staff had been kept informed.
Wednesday, June 30 2010
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