A HISTORIC Scottish hotel run by the same family for seven generations has gone into administration after more than 160 years trading.
The George Hotel in Inveraray, a popular tourist stop in Argyll known for its whitewashed streets, has called in administrators due to the impact of “historic debts”.
Up to 60 jobs are at risk and the hotel has gone on the market in a bid to safeguard them.
The George Hotel as it stands was founded in 1860, according to its website, although an inn by that name is understood to have stood on the spot since 1720.
Kenneth Craig and Kevin Mapstone of Begbies Traynor were appointed as joint administrators of Inveraray Inn Ltd, trading as the George Hotel, on March 28.
The administrators made clear that, despite the firm’s name, it is “not connected in any way with the Inveraray Inn, a hotel by the same name in Inveraray”.
Craig, Mapstone, and Thomas McKay, a partner at Begbies Traynor, will now “supervise business operations as the hotel business continues to trade in the normal manner, providing accommodation, food and public house services, while efforts are made to find a buyer on the open market for the 160-year-old boutique hotel and inn”.
McKay said: “The directors have taken the difficult decision to place the George Hotel into administration as a result of historic debts which were crippling the cash flow of the business.
“The business has been in the Clark family for seven generations and their priority was to safeguard the jobs and future of the 60 full and part-time employees.
“The hotel has a fantastic history and beautiful location, offering excellent accommodation and food.
“The staff have also been fantastic in their hard work and everyone is determined to find the best possible outcome for the benefit of all stakeholders.”
“We are now entering the spring period with summer trade to follow, so it is business as usual and we are fully open for trade as a hotel, which we believe will be attractive to many interested parties. For the time being we will start to market the business and the management will focus on trading the venue profitably with the support of the hotel’s loyal customers and staff.”
The 24-bedroom boutique hotel is located on the western shore of Loch Fyne and has won many awards for its accommodation, bar and food. Its restaurant holds an AA rosette.
The hotel said it will continue to honour bookings and the administrators hope that the support of the local community, and continued trade from tourists and visitors, will ensure the business will attract a new owner and safeguard the jobs that might otherwise be lost.
“The business has a great reputation both as a restaurant and bar, and as one of Scotland’s most historic hotels, and we’re confident that a suitably qualified buyer will want to take over the reins of the George,” Craig said.
“We will operate marketing events in the normal way as we continue to service bookings through trading”.
Potential buyers and interested parties can find out more about the George Hotel and make enquiries directly with Begbies Traynor through its Glasgow office.
