The Flamboyant Hotel and Villas will close its door for business with effect from July 31.
A source close to the hotel told THE NEW TODAY newspaper that a local commercial bank that has been bankrolling the hotel took the decision to sell the shares to a Canadian outfit.
He said that the 60 workers have already been given letters of termination of employment with the hotel.
He spoke of the Board of Directors of Flamboyant meeting with the staff on Monday and explaining to them that the company has been experiencing financial difficulties since 2008 and the management had no other choice in the matter.
This newspaper understands that the three star hotel has been losing a substantial amount of money in the past eight years.
Chairman of the Board, Hugh Dolland reportedly told staffers that all efforts were made to turn the situation around in an effort to save the jobs of the workers.
“The bank obviously took the decision to sell the hotel; the figure that they negotiated for the sale of the hotel was not quite what we would have liked to have seen. The hotel has been marketed for quite some time but in terms of the number of buyers that are coming in, they were not many”, the businessman is quoted as saying.
THE NEW TODAY understands that four of the investors with the hotel had failed in their efforts to keep the Flamboyant afloat.
According to a source, they were able to raise one million dollars in October 2015 and asked the bank for an additional 90 days to help wipe out the debts owed but unfortunately not enough money was raised.
He said the bank took the decision in the end to look for a buyer and found one in Canada.
He said the workers were then informed that their employment will be terminated on June 28.
“…The Board of Directors of the hotel asked that the last working day to be July 28th to be in sync with the collective agreement with TAWU which states that there should be at least two months notice to employees”, he added.
Speculation is rife that the new buyers are committed to erecting some new structures on the property as only three of the existing villas will be kept while the others will be demolished.
The source said it is understood that the current employees will be given first priority in terms of returning to the hotel as workers.
He stated that the union has raised the issue of severance pay and the workers have allegedly been assured that the commitment will be met as part of the union agreement.
THE NEW TODAY was told that a meeting is scheduled within a matter of days with the Technical and Allied Workers Union (TAWU) to look at the way forward in terms of payment of a benefit package for the soon to be dismissed employees.