RUMOURS that Ruthin Castle is in administration have been scotched by owners, but the company is experiencing financial difficulties, it emerged today.
A statement released this afternoon said: "The Directors of Ruthin Castle Limited can confirm that the company is not in administration and is not being liquidated.
"The business has however been experiencing financial difficulties and action is being taken by the company to restructure with the assistance of specialist financial advisors Begbies Traynor Group PLC of Leeds.
"The company is seeking the support of creditors by way of a Company Voluntary Arrangement (a CVA). A meeting of creditors is being convened on 14th January. The company believes it has the support of major creditors and suppliers and that the CVA will be successful. Business is being conducted as usual.
"The financial restructuring sought is to assist the company with the shortfall in meeting the unexpectedly high cost of the upgrading and spa development work and the results of several months delays during the spa development process that inhibited revenue growth at that time. The financial restructuring is expected to consolidate the stability of the company and allow it to continue in its new role as a 4-star hotel & spa.
"The underlying trend of the business is positive. Draft audited accounts indicate that the hotel traded at a record level in the 2011-12 financial year despite half its rooms being closed for the last three months whilst upgrading was being carried out and the spa added. With the benefit of the new and upgraded facilities revenues have already shown a pattern of substantial increase, with the months of September, October, November and December 2012 all up on respective 2011 revenues and forecast to continue increasing. The hotel is trading profitably and profits are also forecast to increase despite the general economy.
"The company is seeking to strengthen its existing working relationship with the local community whilst simultaneously looking to further enhance its reputation at a nationaland international level. The hotel employs in excess of 100 full and part time staff andwhilst changes to the current organizational structure are inevitable the company is engaging with its employees to minimize the number of people affected by the current situation.
"Ruthin Castle Limited owns Ruthin Castle hotel and in 2012, with the help of HSBC andthe Welsh Government, invested heavily in creating the Moat Spa and upgrading the hotel to 4-star standard."
http://www.dailypost.co.uk/news/north-wales-news/2013/01/09/ruthin-castle-experiencing-financial-difficulties-55578-32575323/
