THE company which owns Seaham Hall has gone into administration.
Von Essen, which bought the five-star hotel and spa in 2008, has racked up debts of £250million.
Administrators Ernst and Young have been called in after the business failed to meet interest payments on its debts. It is understood the administrators were called in by Barclays and Lloyds banking.
No one could be reached at the company for comment, but in a statement from Ernst and Young, joint administrator Angela Swarbrick, said: “It is business as normal for the hotels and customers of von Essen Hotels can continue to enjoy their stay.”
While the holding company has found itself in trouble, the accountants said the hotels themselves are not in administration and will continue to trade as usual.
It added it was too early to say how its debts would be resolved, but there were no immediate plans to sell off its assets.
A spokesman for von Essen said: “People should understand that the hotels are not in administration and continue to trade as normal.”
The firm owns 28 hotels across the UK and France.
In its last set of accounts the properties and assets were valued at £430million.
The company had bought Seaham Hall from previous owner Tom Maxfield for an undisclosed sum.