The Grand Hotel in Goondoon Street will be sold to pay off creditors.
The Grand Hotel in Goondoon Street will be sold to pay off creditors.

The Grand Hotel to be sold

By MAT OVENDENmovenden@gladstoneobserver.com.au

GLADSTONE'S Grand Hotel will be sold in order to pay its creditors, including staff annual leave and superannuation entitlements.

Administrators yesterday confirmed the hotel was on the market and had been approached by a number of interested investors.

After closing its doors last week, the public bar, gaming room, drive-through and detatched bottleshops were reopened for trading last weekend, however the main bars and nightclub remain closed.

In a statement to The Observer yesterday, administrator Robert Hutson said the hotel would undertake a staged opening of other areas of the hotel over the next week.

He said the hotel's closure last Wednesday was done to allow for the preparation of independent reports on the hotel's operations, including a stocktake and workplace health and safety audit. Administrators were appointed last Monday after the directors of Roseberry Developments, the owner of the hotel property and sole shareholder of Grand Hotel Operations, resolved that the company was insolvent or likely to become insolvent.

Manager Bob See was dismissed on Wednesday and Michael Jones was brought in by administrators to manage the operation.

According to Mr Hutson administrators, where possible, had attempted to continue the employment of existing hotel staff and employees, however he admitted at least one staff member had not been re-employed because of an alleged gaming licence breach.

'We are now undertaking further investigations regarding the financial position of the hotel and working to develop a restructuring plan,' Mr Hutson said.

'It is likely that a sale of the hotel will be pur-sued as part of the restructuring plan to generate funds for creditors.

'The administrators have made arrangements to pay staff and employee wages up to date and there are only small amounts owing to staff and employees for annual leave and outstanding superannuation contributions.

'It is expected that all employee entitlements will be paid in full upon a sale of the hotel,' Mr Hutson said.

He said he had already had 'a number of inquiries from parties interested in purchasing the hotel'.



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