Liquidation-threatened hotel could be saved by investors

THE Westcourt Hotel, in Drogheda, Co Louth, could be reopened by a group of investors, despite its holding company filing for liquidation, according to local media reports.

According to the Drogheda Leader, a local newspaper, a group of investors including some of the existing owners have committed to reopening the hotel once it is economically viable to do so.

The newspaper reported that the trading company which owns the hotel business, Powerscourt Hotels Limited, is a different entity to the one that holds the hotel property.

Despite Powerscourt Hotels seeking to appoint a liquidator, the ownership of the hotel property itself is not for sale, the paper said. The building’s owners are understood to be determined to reopen once it is possible and when Covid-19 has passed.

Ergo understands the meeting of creditors is to take place on August 14. Eamonn Leahy of Leahy O’Riordan Chartered Accountants, is expected to be appointed as the liquidator.

Ergo has spoke with one creditor who shared his frustration with the hotel. He claimed creditors would receive nothing and there is concern about jobs at other businesses in the area due to the credit already given.

It is understood that around 70 staff at the hotel were recently told that it would not be reopening for the “foreseeable future”.

According to the most recent accounts for Powerscourt Hotels, which has operated the hotel since 1989, for the year ended March 2019 it owed creditors in the year ahead just over €1.8m.