250 Clare jobs are saved in hotel group

WITH creditors consenting to write off debts of €3.5 million, the Clare-based Lynch Hotel Group has successfully emerged from its examinership process and the jobs of over 500 people employed in its hotel chain secured.
The Lynch Hotel Group voluntarily undertook the process earlier this year in order to protect its business and the employment of staff members, 250 of which are based in its three Clare hotels – The West County, The Clare Inn and The Ocean Cove in Kilkee.
In total, the group, which had debts in excess of €22.85 million, owns and operates seven hotels in the West of Ireland. All properties in the group remain intact and will continuing trading as normal as part of the Lynch Hotel Group.
The group, Ireland’s largest family-run hotel chain, received a positive outcome at a confirmation hearing in front of Ms Justice Finlay Geoghegan in the High Court this week following the issuing of the report of examiner Michael McAteer of Grant Thornton, a Dublin-based accounting and auditing company.
The payment package to creditors, which was approved, will see preferential creditors accept 15% and agreed creditors 10% of monies owing.
The companies that were under court protection were the West County Hotel; Dale Park Properties Ltd; Breaghwy House Hotel Ltd; Pyrmont Ltd; LHG Catering Promotions Ltd; Breaffy Wellness Hotel Ltd and Clare Inn Hotel Ltd, all with registered offices at Clare Road, Ennis.
Michael Lynch senior and his son, Michael B, are listed as directors of the companies in examinership.
Michael B Lynch said he was thankful to the court and grateful to their business partners, suppliers, staff members and loyal customers for their continued support and understanding throughout the process.
“We look forward to continuing to offer the best value for money in the Irish hotel industry for many years to come and continuing to grow our core competencies in the leisure, conference, wedding and event markets,” he added.
However, the plight of the Lynch Hotel Group had provoked a bittersweet reaction.
The Irish Hotels Federation has welcomed the successful examinership of the Lynch Hotel Group and the preservation of 500 jobs but says it’s not a viable option for many hotels in the Mid-West.
The IHF says there are mixed feelings among other hotels in the region as large debts to Clare County Council, Ennis Town Council, the Revenue Commissioners and many local businesses were written off as part of the process.
It has argued that local authorities should consider reducing commercial rates for hotels whose business has dramatically declined and should enter into negotiations far sooner with businesses in financial difficulties to agree phased payments over a longer period.