Receivers have been appointed to hotels within the Clare Based Lynch Group.
The Clare Inn in Dromoland and Breaffy House Resort in Mayo are set to be affected by action which is being taken by the hotel chain because of difficulties in securing working capital after Bank of Scotland Ireland’s withdrawal from the market.
The Lynch hotel group employs five hundred people at seven hotels including The West County Hotel in Ennis; The Clare Inn in Dromoland, Co. Clare, The Ocean Cove in Kilkee; George Boutique and The South Court in Limerick as well as Breaffy House and Breaffy Woods in Mayo.
The hotel chain successfully emerged from examinership in 2009, but receivers are now being appointed to two hotels within the group because of difficulties in securing working capital since the decision of Bank of Scotland Ireland to withdraw from the Irish market.
In a statement to Clare FM , Managing Director, Michael B Lynch added that the poor weather coming up to Christmas which lead to large numbers of cancellations was also a significant blow for the hotel chain.
However he went on to state that following their discussions with the bank and receiver, the group has secured a position where both The Clare Inn and Breaffy House Resort will remain open and continue to trade as normal.
