Cash strapped Hotel Tower to liquidate assets to cover salaries and bills

Cash strapped Hotel Tower to liquidate assets to cover salaries and bills

The Management team at the recently closed Hotel Tower on Main Street has formally announced the closure of the hotel and is indicating that within the next month, the hotel will sell its assets so that it could settle outstanding salary issues with former employees and also settle debts.

In a release, the company said its decision to close operations on May 24, 2014 “was a last resort, especially given the number of employees that were likely to be affected”.

“In recent times, the Hotel has seen a dramatic decline in business and despite the best efforts of management; the hotel was still unable to meet certain financial obligations”, the statement added.

According to the Management at the hotel, while the Hotel remained asset rich, there was insufficient liquid cash available to Management to finance the day-to-day operating expenses of the hotel.

The release pointed out that “Tower Hotel’s electricity supply was suspended by the Guyana Power and Light Inc. which forced Management to close their doors for business. Alternative arrangements were made for the guests who were staying in the hotel to facilitate the closure on such short notice”.

In offering its regrets to its former employees, the company said it did not have the liquid cash to cover the payroll and as a result employees’ salaries were not paid.

“Steps are being taken to liquidate assets to cover these outstanding salaries owed to employees within a month”, the statement concluded.

Several workers from the hotel were left shocked when they were told that last Saturday would have been their last day in the hotel’s employ. Many of the staffers complained about not being given adequate notice about the closure. However, the admitted that many of them worked for a number of weeks without being compensated and only being given promises.

The Tower Hotel is one of Guyana’s oldest hotels. It has changed management on a number of occasions over the past few years after it emerged from receivership. Just recently the company started a search for a new investor.

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