Inveraray George Hotel falls into administration over 'crippling' historic debts

A 160-year-old hotel in Argyll and Bute has announced that it has entered administration, putting 60 local jobs at risk.

The Inveraray George Hotel is searching for a new owner after “crippling” historic debts caused it to fall into administration.

The 24-bedroom hotel will continue to operate as normal while the search for a new owner continues.

The Inveraray Inn Ltd – which operates Inveraray’s George Hotel on the western shore of Loch Fyne – announced the news on Tuesday.

Thomas McKay, who is overseeing the trade and sale process with the administrators and their staff, said: “The directors have taken the difficult decision to place the George Hotel into administration as a result of historic debts which were crippling the cash flow of the business.”

Inveraray’s George Hotel has been in the Clark family for seven generations, but Mr McKay said their priority was safeguarding the jobs and future of the 60 full-time and part-time employees.

“For the time being, we will start to market the business, and the management will focus on trading the venue profitably with the support of the hotel’s loyal customers and staff,” Mr McKay said.

“We ask the local community and customers further afield who wish to use the hotel, as well as the subscribers to the hotel – over 25,000 of them – to continue to support and visit the venue as usual as we seek to find a buyer for the business as a going concern.”

Kenneth Craig and Kevin Mapstone of Begbies Traynor were appointed as joint administrators of the George Hotel on March 28.

Both the administrators and Mr McKay, a partner at Begbies Traynor, will now supervise business operations as the hotel continues providing accommodation, food and drink while efforts are made to find a buyer are ongoing throughout the summer.

“The hotel has a fantastic history and beautiful location, offering excellent accommodation and food. The staff have also been fantastic in their hard work, and everyone is determined to find the best possible outcome for the benefit of all stakeholders,” Mr McKay added.

The hotel has previously won many awards for its accommodation, bar and food while its restaurant holds an AA rosette.

It will continue to honour bookings.

Administrators have emphasised that the company in administration is not connected in any way with the Inveraray Inn, a hotel by the same name in Inveraray.