SIPTU to meet hotel operators

THE future of the Lynch Hotel Group plunged into further uncertainty this week amid reports that the West County Hotel has become the third hotel in the group to go into receivership.

The Lynch Hotel Group would not comment on the reports. However, they have stated, “The West County Hotel continues to operate under Lynch management and it is very much business as usual at the hotel.”
It is reported that AIB have appointed a receiver to the West County Hotel the day after Michael B Lynch announced that a receiver was being appointed to the Clare Inn Hotel and Breaffy House Resort by Bank of Scotland, Ireland.
Representative of SIPTU, Tony Kenny, in response to questions about the West County Hotel, stated, “I can confirm it is SIPTU’s intention to meet with the operator and all other interested parties by the end of the week to resolve all outstanding matters.
The West County Hotel, which opened in 1968, was the first to be developed by Michael Lynch Senior. Last week, it was confirmed by Michael B Lynch that a receiver was being appointed to the Clare Inn Hotel and Breaffy House Resort. Darada Management Services are the new hotel operators.
In a statement announcing the appointment of the receiver last week, Mr Lynch outlined that the decision of Bank of Scotland Ireland to withdraw from the Irish market from January 1, 2011 has had a serious impact on the group’s ability to source working capital over the winter months, as has been standard practice in the hotel industry over the last number of years.
“We had a duty to move to protect the 500 employees’ jobs in our seven properties and do right by their families in these harsh economic times,” said Mr Lynch. “It is with great regret that we have had to make this decision but I am happy that in our discussions with the bank and receiver that we have secured a position where the properties will remain open and continue to trade.”
Speaking to The Clare Champion following the announcement, Mr Kenny described it as a “very sad day for the Lynch group and their employees”.
“We think a lack of credit and the attitude of the banks have been a serious factor in pushing the Lynch Group into receivership. It’s the intention of SIPTU as the union representing employees in the Lynch Group to meet with the receiver appointed to the Clare Inn and Breaffy House and also with the new operator appointed by the receiver, in the coming days. In doing this, we expect to agree the transfer of existing terms and conditions of employment of our members and attempt to save the future of the properties and sustain them into the future,” he stated.
The Lynch Group successfully emerged from examinership in November 2009. The company voluntarily undertook the process in order to protect its business and the employment of more than 500 staff members.