ONE OF the few remaining hotels in the Arbroath area has closed, it is believed because of a new legal wrangle over ownership. Letham Grange Hotel and its associated two 18-hole golf courses ceased operations on Friday.
A closure notice was posted to the front door of the establishment by Letham Grange directors Neil Rimmer and Paul Rodgers.
It stated: “It is with great sadness that the directors of Letham Grange Management Company Limited (LGMCL) announce that the business will cease trading with immediate effect resulting in the closure of the hotel and golf courses.
“This action has not been taken lightly and results from the contract to operate the hotel being terminated after LGMCL’s shareholders stated that they were unable to continue to fund the operation.
“LGMCL was appointed to run the hotel following the successful outcome of the original liquidator’s litigation with Peter Liu in February, 2009, and has invested heavily in the business to restore operations.
“Unfortunately there is further ongoing litigation with no clear solution despite a lengthy and very expensive hearing in June, 2010. As a result of this continued and ongoing uncertainty the directors have been unable to secure investment for the ongoing trading of the business.”
Situated just four miles from Arbroath, Letham Grange is set amongst 300 acres of parkland and was converted into a hotel and golf resort in the 1980s.
Taiwanese businessman Dong Guang (Peter) Liu previously sought to take possession of the property claiming it is his, and legal proceedings went through all levels of the Scottish court system and to the House of Lords.
Letham Grange Management Company Ltd., was appointed to run the hotel following the outcome of the original liquidators’ litigation with Mr Lui in February, 2009.
Letham Grange Golf Club captain Nick Jackson said: “This is a very sad day in the history of Letham Grange Golf Club, coming just as we enter into our 25th year.
“This is a blow not only to golfers who play at and visit Letham Grange, but it is also devastating news for those who worked in the hotel or on the courses.
“The golf club committee met to discuss options and a way forward with the sole objective of finding a way to work with the administrators and liquidators to continue playing golf on Letham Grange’s wonderful golf courses.”