The former staff of Kirroughtree Hotel have been left without wages and tips owed to them when the hotel suddenly shut earlier this month.
Administrators RSM Restructuring Advisory LLP, based in Edinburgh, say their claims are being dealt with by the Redundancy Payments Service (RPS).
A spokesperson for RSM said today: “Paul Dounis and Lindsey Cooper of RSM Restructuring Advisory LLP were appointed Provisional Liquidators of Kirroughtree House Hotel on November 7, 2017.
“Kirroughtree House Hotel, based in Galloway, is a heritage-listed mansion hotel that catered for business and tourist visitors. The business employed eight employees.
“The Company had suffered financially over time due to a slowdown in tourism to the area. Due to this, the director made the decision to appoint a liquidator. All employees were made redundant and their claims are being dealt with by the Redundancy Payments Service (RPS).”
Paul Dounis, RSM restructuring advisory partner in Scotland, added: “The director at Kirroughtree House Hotel has taken the difficult decision to close due to increasingly tough trading conditions. We are working with our professional advisors to support staff and assess the company’s remaining assets with a view to maximising realisations for creditors.
“Regarding particular employee claims, the team is working with the Redundancy Payment Service to process the claims as quickly as possible within the RPS guidelines.”
A former staff member, who did not want to be named, told the Galloway Gazette that “bad management” was to blame for the hotel’s demise.
The former employee said: “With no prior notice on Monday 6th November to be informed from that moment we were redundant.
“We never received our last week’s wages or eight months tips that had been held back.
“The chef had left two years previously. Cooking was then done using food pre-prepared and bought at local supermarkets. The locals were aware of this and never returned.
“We were also told not to accommodate anymore than 10 guests a night and instructed which days we would be open.
“Bad management, not a decline in business was chief cause of closure.”