A flagship hotel in Liverpool, which is part of Signature Living Group which also owns Cardiff's Exchange Hotel, has gone into administration.
The Shankly Hotel, one of the most well-known hotels in Liverpool, had closed its doors to the public during the coronavirus lockdown.
But on April 9, administrators from financial firm Duff & Phelps were appointed to act as administrators of the Signature Shankly Ltd - the firm holding the leasehold interest of the Shankly Hotel.
Matthew Ingram and Michael Lennon are the joint administrators appointed by the firm, and told the Liverpool Echo the wider Signature Living group, run by Lawrence Kenwright, remains unaffected.
They also stated that they expect the hotel to open again for business when lockdown restrictions are lifted.
Mr Lennon said: “The hospitality industry as a whole has seen increased pressures in recent years and has now been instantly hit incredibly hard by the Covid-19 pandemic.
"As a result, the Shankly is temporarily closed. Management’s expectation is that once the lockdown is lifted trading will continue as normal.”
A statement from Signature Shankly's parent company, Signature Living, run by Lawrence Kenwright, said: "Due to Covid-19 and government guidelines the Shankly Hotel ceased trading with immediate effect.
"We have been left with no option but to place the property subsidiary of the hotel into administration. The operational trading company for the Shankly Hotel remains unaffected as does the wider Signature Living group.
“We are all facing unprecedented times and the impact of this pandemic on our business has forced us to make some immediate and difficult decisions.
"The operating company remains completely unaffected. It will be business as usual for the Shankly Hotel as we are fully committed to our staff, suppliers, future events and guests. We look forward to opening our doors as soon as it’s safe to do so."
Many investors in Signature Living have been concerned about seeing a return on their money. In November, devastated investors told WalesOnline they were "owed thousands" by the Cardiff Coal Exchange developer.
Stephen Doughty - Labour's MP for Cardiff South and Penarth - has previously raised "serious about concerns" about the financial model and record of Signature Living when their proposals for the Coal Exchange first came to light.
