Fifty-six hotel workers lose their jobs
Published 04/12/2012 | 11:41
FIFTY-SIX JOBS are to go in Carlow this month when Killerig Hotel closes its doors to the public on December 16.
The hotel, which has been in receivership since April of last year, has been up for sale since then and the Receiver decided to shut the doors as debts continue to mount.
Staff were informed of the news on Friday.
"We have a good crew here and I am confident that they will find work," said general manager Larry Bowe.
Staff at the hotel in Tullow were told the bad news after the receiver failed to find a buyer for the hotel and debts continue to mount. Doors will close to the public on December 16 and staff will take up to two weeks dealing with debtors and creditors, tidying the building and returning stock.
"Unfortunately overheads were just too high. The hotel industry in general is on its knees at the moment and Carlow wouldn't be a destination spot.
"This is just a 42 bed hotel so it is hard to spin costs and room rates wouldn't be that high. Hopefully it won't be closed for long and they will find a buyer. It's an awful pity."
A decision was made by the receiver, Aiden Murphy of Crowe Horwath accountants, to cease trading this month after they had anticipated that sufficient profits could be generated during the summer and autumn months to support trading through the quieter winter period.
The hotel has traded since April 2011 and has been up for sale during this period because of a growing concern by the receiver.
"Unfortunately, due to the weak status of the hotel market in the area and the scale of the hotel at just 42 rooms, sufficient profits were not generated and so it is no longer possible to continue trading,' said Aiden Murphy.
"Trading had been reduced to a weekend only basis since October and the hotel will close its doors during the last week in December resulting in the loss of 19 full time and 37 part-time jobs."
The closure will not affect the Killerig Golf club and Holiday Homes which are under separate ownership and management.
"I would like to express my thanks to both the staff members and customers who have supported the hotel over the past 20 months; unfortunately at this point in time due to the economic situation there is no other option than to close the hotel."