Belfast Telegraph

Northern Ireland hotel directors declared bankrupt

The hotel has since reopened, and is now being run by new owners

By John Mulgrew

A director and former director of a hotel which previously shut-up shop have been declared bankrupt.

The Mellon Country Hotel in Omagh, which is famous for hosting country and western music events, was closed last year, after the company running it went into administration.

The hotel has since reopened, and is now being run by new owners.

Now, Liam Duddy, of Crevenagh Road in Omagh, who is still listed as a director of Mellon Country Hotel Ltd, and a former director, John Duddy, of Gortmore Drive in Omagh, have been declared bankrupt, both through a debtor's petition.

KBC Bank appointed Keenan Corporate Finance as administrative receiver to the company that owns the hotel, Mellon Country Hotel Limited, in June last year.

But the firm ended its administration of the hotel, earlier this year.

Around 30 staff were let go in June 2016 when the hotel ceased trading, according to a report from the administrators.

The hotel, along with all of its fixtures and fittings, were sold in September, after being marketed by commercial property firm OKT.

It says that more than £369,000 was paid to secured creditors, and a further £676 to preferential creditors.

The report said that at the time of the appointment of administrators, the company had outstanding loans, including interest, of £655,000.

Mellon Country Hotel has played host to a number of country stars over the years.

The venue, on the A5 road between Omagh and Newtownstewart, is a popular hotel and restaurant which has played host to big names on the country scene, including Lisa McHugh, Derek Ryan and Johnny Buckley.

The hotel had been put up for sale for £450,000 last year, after going into administrative receivership.

A previous report from administrators Keenan Corporate Finance, in August 2016, showed the losses and financial position of the hotel.

It says the hotel was kept open until June 30, but was then shut "due to its loss-making position and the inability to fund working capital".

However, it said that "all of the employees were made redundant".

It left behind debts of more than £650,000 to KBC Bank Ireland.

Its biggest debts were to unsecured creditors, amounting to more than £1m.

The bulk of that was a business loan to Liam Duddy, amounting to £970,000.

As well as its 18 en-suite rooms, the hotel, which is on the Beltany Road between Omagh and Enniskillen, has function rooms, a bar and a restaurant.

Other debts included £1,500 owed to Lynas Foods and more than £7,500 to Northwest Liquor.

Administrators say the redundancy claims relating to job losses are thought to be around £15,000.

Belfast Telegraph

Weekly Business Digest Newsletter

This week's business news headlines, directly to your inbox every Tuesday.