Co Clare-based hotel group Lynch Hotels has voluntarily entered examinership but said all pre-booked events are secured and will proceed as planned.
The group, which is owned by Ennis-based businessman Michael Lynch, said it had entered examinership to restructure the business.
Examinership provides a period of court protection – in this case 100 days - from creditors while a company seeks to negotiate a settlement.
Mr Lynch said group had 530 employees and was “a fundamentally sound business” but needed to restructure. It owns six hotels and operates a seventh.
“It is business as usual in all seven of our hotels and we look forward to welcoming all of our customers as normal,” he said in a statement yesterday.
Michael McAteer of Grant Thornton, Dublin, has been appointed to conduct the examinership proceedings.
The group’s hotels are based in the west of Ireland and include the George Hotel in Limerick city and Breaffy House Hotel in Castlebar, Co Mayo. It is also involved in property development.
The group was established in 1968 by Mr Lynch’s parents with the West County Hotel in Ennis.
A Customer Support Line - 1890 66 99 00 / 065 68 23000 – has been set up to deal with customer inquiries.
The Irish hotels sector has come under huge pressure since 2008 with a survey from accountancy firm Horwath Bastow Charleton earlier this week estimating profits in the sector fell 25 per cent last year.
Profits could fall by up to 70 per cent this year and the sector is heavily indebted, the report found.
A receiver was appointed to White’s hotel in Wexford last week and Pat McCann of Maldron Hotels has taken over the management.
Mr McCann said White’s will be run independently of Maldron and that all reservations will be honoured.
