Jobs have been lost after a firm that operates two Perthshire hotels entered administration.
Mountview Hotels Limited owns The Crags Hotel and Abbotsford Lodge, both in Callander.
The Crags Hotel, on Main Street, has nine rooms, while Abbotsford Lodge is a detached stone villa on the outskirts of the town. It has 15 rooms.
Michelle Elliot and Stuart Robb, partners with FRP Advisory, have been appointed joint administrators.
Impact of rising costs on hotel operator
They said the hotels have historically traded well. However, they have been severely impacted in recent months by significant increases in operating costs.
In addition, costs incurred during the Covid-19 pandemic also led to unsustainable cash flow problems.
Both hotels – which had been recently refurbished – ceased trading at the end of December, which led to several redundancies at that point.
Now, the four remaining staff in the company, have also been let go.
The administrators will now liaise with the Redundancy Payments Office (RPO) and other agencies to minimise the impact on the staff.
They will help ensure their claims for redundancy and other entitlements due are processed as quickly as possible.
Hotel owners ‘unable to survive’
Michelle Elliot, partner with FRP Advisory, said: “The Crags Hotel and Abbotsford are well known venues within Callander.
“Unfortunately, having explored all its options, the company was unable to survive the fall in revenue coupled with the significant increase in fixed costs over recent months.
“We will now focus on assisting employees to submit claims for redundancy and other sums due to them.”
She urged anyone who has a claim to contact James Dempster at james.dempster@frpadvisory.com
