Hopes that the Bay View Hotel in Killybegs will re-open have received a huge setback after a receiver was appointed to the company behind the hotel.
Bank of Scotland (Ireland) appointed the receiver to the company behind the hotel, which closed suddenly last month.
According to a notice on the hotel’s website, the Bay View Hotel has been closed ‘‘until further notice’’.
The hotel on Killybegs’ Main Street has 40 bedrooms and a leisure centre and employed 45 people when it was opened.
But it now appears that hopes of saving those jobs have been dashed.
Jim Hamilton of accountancy firm BDO has been appointed receiver to Wagala, which operated the hotel.
According to its latest accounts, the firm wrote down the value of the hotel from €4.1 million to €2.6 million in 2008, reflecting the ‘‘substantial deterioration in property prices’’.
Turnover at the company fell to €1.5 million in 2008 from €1.7 million the previous year.
After the property writedown, Wagala made a loss of €1.7 million for the year. The company paid wages of €670,000 for the year.
The directors of Wagala are Pascal Power, Bernie O’Callaghan, Mary Kearns and Philip McBride.
The four are also directors of a holding company called Bayview Hotel Killybegs. At the end of 2008, that company owed €3.2 million in bank loans and also owed €1.1 million to its directors.
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