Twelve people have lost their jobs after a prominent Fife hotel closed its doors at the weekend, it has emerged.
A buyer is now urgently being sought for the OYO Beveridge Park Hotel in Kirkcaldy after Blair Nummo and Geoff Jacobs of KPMG were appointed as joint administrators of Ahaven Hotel Limited – the company which owns the once thriving Abbotshall Road venue – on Monday.
The administrators confirmed there was “no other viable option” than to cease trading with immediate effect.
The Courier revealed yesterday that owners Bobby and Gina Kumar closed the hotel with little warning on Sunday night, prompting concerns from people whose bookings have been cancelled or who have paid deposits for forthcoming functions.
Guests forced to pay double for alternatives as Fife hotel closes without warning
Blair Nimmo, joint administrator and KPMG’s UK head of restructuring, said: “Unfortunately, due to challenging trading conditions and cash flow difficulties, Ahaven Hotel Limited was unable to continue trading.
“This has resulted in the closure of the Beveridge Park Hotel and the consequent redundancies which have been announced.
“We will work with all affected employees and the relevant government agencies to ensure a full range of support is available.
“We will also now be looking for a purchaser for the hotel and its assets.”
Ahaven Hotel Limited was set up in 2007 to take over the 31-bedroom landmark, which was formerly known as the Parkway Hotel,
It was known locally for its Indian and Scottish cuisine and its extensive functions suite, which held regular weddings and events.
The owners sought to address their financial difficulties through a range of measures, including staff cuts and ploughing their own money into the business.
However, the administrators said cash flow problems had led to “significant” creditor arrears – leaving them no option but to shut up shop.
The hotel is expected to remain closed for the foreseeable future, although a spokesperson for OYO has raised hopes it might be able to re-open.
“There were a high volume of future bookings already confirmed and OYO would love to keep the hotel operational to fulfil those future stays,” the spokesperson added.
“Ultimately, this decision will rest with the administrators, so we cannot comment further at this point.”
