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Pub and hotel chain goes into administration

Dark Star Scotland hopes to continue trading, less than a week after its sister hotels business also called in for help.

29 June 2009 12:57 GMT

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Pub and hotel chain goes into administration

The Glasgow-based bar and club operator Dark Star Scotland Ltd has gone into administration after its owners made a similar move with its hotels group.

Dark Star runs 13 leased premises across Scotland, including three of the popular Budda bars in Glasgow. The business was purchased last year by McKever Group, which on Wednesday announced the appointment of administrators to take over its McKever Hotel chain.

Tenon Recovery said it plans to continue trading Dark Star with a view to marketing the business for sale as a going concern.

Kenny Craig of Tenon said: "Dark Star has a portfolio of high quality bars, restaurants and hotels in good locations that are well-known in their local communities. Whilst not immune from the recent economic downturn, the units were performing relatively well and we are confident that the business will appeal to companies already operating in the licensed trade, or to entrepreneurs keen to enter the sector.

"It is therefore very much business as usual whilst we focus on finding a buyer or buyers as soon as possible."

Dark Star has around 280 staff across the business, but there are no immediate plans for redundancies.

McKever Group, which was established in 1982, said last week it hoped administrators will save the hotel business from collapse and its 600 workers from redundancy.

The group said BDO Stoy Hayward appointed a management team to run the hotels part of the business. McKever Hotels offers accommodation in Aberdeen, Ayr, Banff, Bathgate, Dunfermline, Glasgow, Gretna, Kilmarnock, Loch Lomond and Oban, in Scotland.

Alistair McKever, one of three shareholders in Dark Star and majority shareholder of McKever Group, said on Monday: "This is another terribly sad day for all concerned. My colleagues and I are working with the administrator to secure the best outcome for both staff and creditors."

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