Best Western hotel enters liquidation owing almost £1m
A Best Western hotel in Lancashire has entered liquidation owing almost £1m.
The move comes after a bid to close Park Hall Hotel down to the public and use it as accommodation for asylum seekers failed.
The Charnock Richard hotel, set near to the former Camelot attraction in Chorley, closed its door on February 7.
LancsLive reported that its owners had intended seek a Home Office contract which would have seen it become a temporary home to people waiting for decisions on asylum applications.
However, that plan fell through and the hotel has remained closed except when certain areas were reopened for a club night run by BTID Events.
According to newly-filed documents with Companies House, Park Hall Hotel had an estimated total deficiency of £961,168.51.
Some of its creditors include Booking.com, Santander, TalkTalk and Vimto.
Leeds-based Smith & Barnes Insolvency is handling the liquidation.
In a letter sent to creditors, which was seen by LancsLive, said: "Due to the Covid-19 pandemic, the company was unable to trade due to the restrictions put in place.
"Even when the business was able to trade, substantial trading restrictions were still in palace and the company was unable to trade to its full capacity, and therefore began with cash flow problems.
"The company secured a small bounce-back loan from the government funding scheme which was utilised to pay the expenses of the company.
"This removed some pressure in the short term, but unfortunately, this was not sufficient to support the company’s cash flow and ongoing cost."