The decision for Catthorpe Manor Estate to cease trading suddenly at the weekend was “not taken lightly”, according to their latest annoucement.
Staff, guests and brides and grooms-to-be were left shocked and stunned by the closure.
The company has now told former employees to limit their discussions on social media.
The latest announcement on Facebook said: “Catthorpe Manor Estate ceased to trade on 20th September 2023 and will no longer be able to accommodate any current or future bookings.
"This decision has not been made lightly but has been taken to avoid further losses and following the wider group no longer being able to support its trading. We apologise for being unable to inform all parties formally, until now, but various actions needed to be taken prior to any public notice, in order to safeguard the company’s other trading activities, its employees and residents; while also securing the funds necessary to pay the fees and costs of its insolvency.”
Any customers who have paid deposits for services which they will no longer receive should contact their bank, card provider or payment facility as typically any payment paid by a credit card or by a payment facility such as PayPal will be covered by credit indemnity insurance which allows for customers to be repaid by their provider if the payment is above £100 and the service will not be received.
The statement said: “Unfortunately, most debit cards do not provide credit indemnity insurance and BACS & CHAPS payments will often also not be covered. Therefore, if your provider confirms that it is not responsible for making a repayment to you, your claim will rank as an unsecured creditor within the insolvency process. However, given the limited assets owned by the company, creditors should note that a dividend is not likely here.”
The company is now seeking advice from a licensed insolvency practitioner who has been provided with a detailed list of the customers and creditors.
They said: “Formal notice of the insolvency process being undertaken and the dividend prospects for creditors, will be sent out by them as soon as they are able. It is hoped that this notice will be sent sometime next week but is reliant on various actions of the parent company which may be delayed due to its complex structure.
“All employees are asked to limit their social media activity, regarding their position or the position of the company, as any misinformation could cause greater distress and also hinder the ability of the directors to safeguard the tenancies of its residents, and employees of its other trading site.
“It should also be noted that no successor business is being proposed for the Catthorpe Manor Hotel and therefore any claims about its future use made on social media are inaccurate.
“The directors sincerely apologise for any distress caused by the closure and can confirm that we are committed to working towards closing the business as quickly as possible, in the appropriate way, so that all parties are formally notified of their position as promptly as possible.”