Post by carvanian on Dec 20, 2012 22:02:08 GMT -1
Around 160 jobs are in jeopardy after a luxury hotel hit financial problems.
The business behind the four-star 95-bedroom Sketchley Grange Hotel, in Burbage, has gone into administration.
Administrators Deloitte blamed the fact a sister company, developer FE Downes, had gone into liquidation after owing HM Revenue & Customs a "significant" sum in unpaid VAT.
A major expansion, which saw the creation of an additional 43 bedrooms, as well as conference and wedding facilities, was delayed because FE Downes had been working on the scheme. However, the work was eventually completed.
Joint administrator Adrian Berry said: "The disruption to the hotel arising from the delay to the extension, combined with a downturn in economic conditions, has impacted on the hotel's trading performance."
Mr Berry said the hotel will continue to operate as normal and all deposits for future functions will be honoured. He said a sale of the hotel in the foreseeable future is unlikely and a management company will be appointed in the new year.