A SCOTTISH hotels company has fallen into administration, with all staff made redundant.

Michelle Elliot and Stuart Robb, partners with FRP Advisory, have been appointed joint administrators of Mountview Hotels, which owns The Crags Hotel and Abbotsford Lodge, both in Callander.

The administrators said: “The hotels have historically traded well, however, have been severely impacted in recent months by a significant increase in operating costs and the impact of historical liabilities incurred during the Covid-19 pandemic, leading to unsustainable cash flow problems. Both hotels ceased trading at the end of December prior to the administrators’ recent appointment.

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“Following the closure of the hotels, the joint administrators will shortly begin the process of marketing the hotels for sale and are urging any interested parties to contact FRP Advisory as soon as possible. Unfortunately, all remaining staff (four) have been made redundant with immediate effect and the joint administrators will now liaise with the Redundancy Payments Office and other agencies to minimise the impact on the staff and to ensure their claims for redundancy and other entitlements due are processed as quickly as possible.”

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The administrators noted the Crags Hotel is a centrally located, terraced Victorian property at 101 Main Street, with nine letting rooms, and a bar and restaurant.

Abbotsford Lodge is a detached stone villa on the outskirts of Callander, on Stirling Road, and has 15 letting rooms and a restaurant.

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Ms Elliot said: “The Crags Hotel and Abbotsford are well-known venues within the popular tourist destination of Callander...which have both been recently refurbished to a high standard. Unfortunately, having explored all its options, the company was unable to survive the fall in revenue coupled with the significant increase in fixed costs over recent months.

“We will now focus our efforts on assisting employees to submit their claims for redundancy and other sums due to them whilst preparing to market and sell the hotels."