This article is from page 9 of the 2011-02-01 edition of The Clare People. OCR mistakes are to be expected so download the original SWF or the rendered page 9 JPG
THE West County Hotel, which forms part of the Clare-based Lynch group, will remain under Lynch management, the group’s managing director has confirmed.
The Clare Inn Hotel became the second hotel in the Lynch Hotel group to enter receivership along with the Breaffy House in Castlebar on Friday. Around 150 people are employed at the Clare Inn and Breaffy House.
Michael McAteer of Grant Thornton was appointed receiver last Friday. Pat McCann, founder of Maldron Hotels has been appointed to oversee the management of the Clare Inn and Breaffy House. Michael B Lynch told The Clare People on Monday that “The West County will remain under Lynch management and its business as usual.”
Mr Lynch added that the recent weeks “had been very difficult time” for everyone associated with the business.
In a statement, a spokesperson for Mr McAteer confirmed that, “Michael McAteer was appointed receiver of the Clare Inn Hotel in County Clare and at Breaffy House Resort in Castlebar in County Mayo on Friday, 28 January, 2011.
“As the appointed receiver, it is Mr McAteer’s duty to realise the maximum value from the assets over which he is charged, and discharge any receipts in accordance with the priorities as set out in the Companies Acts.”
In a statement last week, Mr Lynch said he will work with the receivers and the banks to ensure that the jobs are protected and that the affected hotels remain open.
He said, “We had a duty to move to protect the 500 employees’ jobs in our seven properties and do right by their families in these harsh economic times. It is with great regret that we have had to make this decision but I am happy that in our discussions with the bank and receiver we have secured a position where the properties will remain open and continue to trade.”
Mr Lynch said the decision of Bank of Scotland (Ireland) to withdraw from this market “had a serious impact” on its “ability to source working capital over the winter months”. The Lynch Hotel group successfully emerged from examinership in 2009.