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Jan 13 2009 By Adrian Pearson, The Journal

Guests asked to leave as popular hotel is closed

WORKERS and guests at a popular hotel were asked to leave yesterday after it went bust.

The Springfield Hotel, in Durham Road, Gateshead, last night admitted it had wedding receptions and functions in its diary, but said it could not guarantee deposit cash would be returned.

And future of the hotel’s 30 employees is also in doubt.

A spokesman for the administrators, Licensing Solutions, who are acting for hotel owners Legacy hotels and resorts management, said workers would find out their fate in the next two days.

He said: "All guests left the hotel, but no one was physically forced to leave.

"It hasn’t been decided what will happen to the money which people have paid as deposits yet.

"We will be sending out letters to all employees over the next 48 hours explaining to them what the situation is."

A worker in a barbers’ shop opposite the hotel said she had seen guests leaving the building.

She said: "I saw about five or six people leaving in the morning at about 9.30. They were out on the street and most of them didn’t look very happy."

Another woman, who owns a business nearby, said: "I’m sad that this has happened.

"I had my wedding reception there as did my mother and my sister-in-law. People have been coming in all day telling me what’s been going on. The Springfield has always been really popular with people round here, a lot go for Sunday lunch there.

"It was always very upmarket but it did go downhill a bit and I have to say I haven’t been in for a while. It started catering for stag dos and that kind of thing.

"I just hope the people who have already paid to have their receptions there get their money back."

Andy Townsend, chief executive of Legacy Hotels & Resorts, said he was disappointed by the development.

He said the company’s management agreement was terminated from Sunday and the hotel was closed with immediate effect.

Mr Townsend said: "It is a grave disappointment that this situation has occurred and I am led to believe that Licensing Solutions are working with everybody concerned to find a speedy conclusion to this situation."

Click here to read the Chamber of Commerce 'North East Business Barometer Q4 2008' report, in full.

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