The owner of the four star hotel Raithwaite Hall, based between Sandsend and Whitby, has gone into administration.
Skelwith Leisure (Raithwaite) Ltd, part of Skelwith Group, called in joint administrators Jonny Marston and Howard Smith from KPMG to oversee the process. It became apparent the hotel was struggling as a result of another of the group’s companies – Skelwith Leisure. Skelwith Leisure was involved in a lengthy legal battle earlier in the year and was put into liquidation last week.
The company bought the Flaxby development land on the agreement it would be a hotel and golf resort, but later built 2500 homes instead. Understandably, the sellers were not happy about this and took the group to court.
The administrators for Raithwaite Hall have stressed the hotel will continue to trade as normal with ongoing contracts honoured while they ‘assess its financial situation’ and consider future options.