Ashford Castle in receivership as bank seizes Galway businesses

Date Published: 30-Nov-2011

The receivers appointed to the landmark five-star Ashford Castle – which was bought at the peak of the property boom for more than €50 million – have said the hotel will continue trading as normal “for the foreseeable future”.

The iconic 13th century hotel was among the assets of Galway developer Gerry Barrett which were taken over by receivers on Tuesday on the instructions of Bank of Scotland (Ireland).

Other assets seized by the bank include the unoccupied former Bank of Ireland premises at 19 Eyre Square (which later became a Bank of Scotland/Halifax branch), which Mr Barrett bought in 2003 for €7m.

He has also lost his status as ‘superior landlord’ in the Eyre Square Shopping Centre – the bank has appointed receivers over his management rights to the common walkways and malls within the centre. He bought the rights from McInerney Construction in 2004 for €12m.

The bank also appointed receivers over shop units which he owns within the shopping centre, including New Look and Champion Sports – these businesses are unaffected by the receivership.

A spokesperson for Mr Barrett’s Edward Holdings said that despite discussions in recent months with the bank, the company “invited” it to appoint receivers over the assets.

“This step has been taken since it will best preserve the value in the assets and is in the best interests of all stakeholders. Ernst & Young will be appointed as receiver over Ashford Castle and Grant Thornton over the other secured assets.

“Both the Bank and Edward Holdings believe the steps taken are in the interests of all parties and will continue to work together on this issue over the coming weeks,” the spokesperson said.

He stressed that the developers’ other assets – including the G Hotel and the Meyrick Hotel – are not affected in any way.

See full story in this week’s Connacht Tribune.