One of the longest established hotels in Limerick, the Castletroy Park Hotel, has gone into liquidation because of trading difficulties.
The hotel employs 130 staff. They were told at a meeting last Monday of the company's financial difficulties, Staff heard that management were attempting to speak to other parties to put a rescue plan in place.
The hotel's management were due to come back to staff tomorrow to tell them of the progress of those rescue talks.
However SIPTU, which represents some of the staff at the hotel, said staff were informed this morning that the hotel had gone into liquidation. Staff were told to go home, and the hotel is now closed.
Grant Thornton, based in Limerick, has been nominated by the hotel directors as liquidators. They will now proceed to set up a meeting with creditors.
SIPTU is also planning to meet with the liquidators to discuss pay issues for staff.
A note on the front doors of the Castletroy Park Hotel says:
'The Directors regret to announce that the company has ceased to trade and the hotel is closed. The decision has been forced on the Directors as a result of the current economic downturn, which resulted in trading difficulties which were insurmountable.''
Meanwhile the Marriott Hotel in Limerick city centre has said its business is running as usual after rumours it was also to cease trading.
The Marriott in Limerick was run under franchise by Irresistible Hotels - the same group that ran the Castletroy Park - but that arrangement has now ceased.
Fordmount Investments have taken over direct management of the Marriott.