Ross-shire hotel falls victim to collapsing tourism market amid Covid-19 coronavirus lockdown; the Garve Hotel's owner Hart Hotels has announced plans to wind up its entire hotels business
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THE heart could be ripped out of a small Ross-shire village after a landmark hotel fell victim to the Covid-19 pandemic's devastating impact on the tourist trade.
The Garve Hotel looks unlikely to reopen its doors when the pandemic passes after its parent company – Hart Hotels – decided to wind up its entire hotels business after failing to find anyone interested in taking the assets over. Unless a buyer for the site can be found, the hotel will stay closed.
Confirming the news on the Garve Hotel's Facebook page this morning, Hart Hotels said it was seeking to "wind up" its hotel businesses "in an orderly manner over the next few months".
The announcement will be a bitter blow to the village of Garve, where the hotel is not only one of the major businesses, but is a prominent landmark familiar to locals, passing motorists on the A835, and tourists travelling the North Coast 500 touring route.
"The ongoing coronavirus crisis has had a dramatic impact on all business sectors but especially within travel and tourism," said the statement.
"At present it is impossible to establish when hotel operations will return to normal operating capacity.
"The Directors of Hart Hotels Ltd have been carefully considering these matters and have made the decision, in the absence of acquisition from interested parties, to wind up the hotel businesses in an orderly manner over the next few months.
"Consequently the directors lodged an application on 4th May 2020 to the Court of Session to enter into a Creditors Voluntary Arrangement (CVA).
"This is not a decision which has been taken lightly. Our hotel company has welcomed loyal customers for many years to the Cowal peninsula and to the Highlands and has been a prominent figure within the Scottish leisure and hospitality industry.
"However, we have to be responsive to the significant challenges the company would face if we were not to take decisive action.
"The Company have appointed Johnston Carmichael, Chartered Accountants, Glasgow in connection with the CVA. They have already started to contact suppliers and customers with information regarding the CVA Proposal and the process to register payments due or refunds being claimed. If you have not received any intimation please contact finance@davidurquhart.com with details of your claim and to receive a copy of the CVA documentation with instructions on how to register this.
"Please note that the Creditors meeting to consider the CVA application will be held on 21st May 2020."
News of the closure has been met with a flood of sympathy for the hard-working staff at the hotel, who have been involved in the community's response to the lockdown and were helping with efforts to maintain social distancing.
Commenting on the post, Sadie-Michaela Harris said: "So sorry to read this, Gemah and her team have been a huge part of our local community. Always first to offer help in the community. My heart goes out to all concerned."
Nicola McCulloch added: "This is so sad to read Gemah. Have lovely memories from time spent at The Garve. Was looking forward to a trip back to visit you when this was all over. Sending love and best wishes to you and all the fantastic staff."
