Hart Hotels, part of travel operator the David Urquhart Group, is to be wound up and its three properties sold.
The group collapsed due to the impact of the coronavirus pandemic and said it is currently seeking a company voluntary arrangement (CVA), in order to help reach agreement with creditors regarding repayment of all, or part of its debts.
The company added it has appointed Johnston Carmichael, in connection with the CVA, and it has already started to contact suppliers and customers with information regarding the CVA proposal and the process to register payments due or refunds being claimed.
The group has also reportedly put its three hotels – the Glenmorag in Dunoon, the Garve Hotel in Garve and Mackay’s Hotel, Strathpeffer – up for sale in order to help pay off its creditors.
In a statement posted on its website, the firm said: “The ongoing coronavirus crisis has had a dramatic impact on all business sectors but especially within travel and tourism. At present it is impossible to establish when hotel operations will return to normal operating capacity.
“The directors of Hart Hotels Ltd have been carefully considering these matters and have made the decision, in the absence of acquisition from interested parties, to wind up the hotel businesses in an orderly manner over the next few months.”
It added: “Consequently the directors lodged an application on 4 May 2020 to the Court of Session to enter into a Creditors Voluntary Arrangement (CVA). This is not a decision which has been taken lightly.
“Our hotel company has welcomed loyal customers for many years to the Cowal peninsula and to the Highlands and has been a prominent figure within the Scottish leisure and hospitality industry. However, we have to be responsive to the significant challenges the company would face if we were not to take decisive action.”