Glasgow's Arthouse has been put up for sale with a price tag of £6.5m, just over two months after corporate recovery firm KPMG was sent in to try to rescue the four-star hotel.
The hotel, which was once famously booked out by rap star Eminem, was put up for sale late last month. KPMG said the hotel had been under "significant trading pressure" recently, which was further compounded by a related business going into liquidation.
The property's principal creditor, Anglo Irish Bank, which is owed some £6m, is expected to get most of its money back following the sale, but other unsecured creditors are unlikely to be as lucky.
Blair Nimmo, head of KPMG Corporate Recovery in Scotland, said trading at the 64-bedroom boutique hotel would continue during the sale and he did not anticipate any redundancies. The Arthouse employs 80 full- and part-time staff.
Source: Caterer & Hotelkeeper magazine, 3 June 2004