Creditors of the Milford Inn learned this week that the hotel, which went into liquidation earlier this month, has debts of about €5 million.
Creditors were also told that the sale of the hotel in the current economic climate would raise an estimated €1 million.
It is understood that at a meeting on Tuesday morning for creditors, liquidator Tom O’Brien said the hotel’s overall liabilities of about €5 million included more than €3.1 million owed to secured creditors and more than €1.8 million owed to unsecured creditors.
It is believed that Mr. O’Brien told creditors that the sale of the hotel would raise an estimated €1 million. Unsecured creditors, including suppliers who would have provided goods and services to the hotel, have no claim on the business’s assets.
It is also understood that the hotel owes Donegal County Council about €180,000, including more than €64,500 in water charges and about €118,200 in commercial rates.
News of the hotel going into liquidation came as a shock to the community when the announcement was made on April 5th.
The 33-bedroom hotel, operating under the Best Western brand, was part of the Blaney group. Established in the early 1970s, the Milford Inn had employed a staff of about 55 people, with staff numbers believed to have risen to about 80 during the height of the season. The hotel underwent substantial refurbishments about four years ago.
A message on the hotel’s Facebook page and web site offers thanks from the Blaney family to the hotel’s customers and says it is the family’s intention to facilitate the needs of customers at the Water’s Edge Hotel in Rathmullan and other establishments in the Blaney group, including the Silver Tassie Hotel, and the Brewery and Central Bar in Letterkenny.