Cardiff Coal Exchange hotel announces sudden closure
The Cardiff Coal Exchange hotel has closed after its operators claimed it was forced to shut by its freeholder.
The Grade II-listed property, which was once where the world price of coal was set, reopened in 2017 following a £40m revamp and was part of the Signature Living group until the business fell into administration in 2020.
In February 2023, the hotel temporarily closed as a result of a burst water pipe but reopened six weeks later.
The Caterer understands that investors had been funding a renovation project at the property prior to the freeholder Eden Grove Developments Limited taking possession of the hotel on 27 December 2023 for reasons that remain undisclosed.
Coal Exchange Operations LLP confirmed it has "withdrawn from its existing relationship" with Eden Grove despite having "worked tirelessly to reach an agreement".
A spokesperson for the operator of the hotel said: "Eden Grove Developments does not have its interests aligned with the existing operating business and has imposed restrictions resulting in a huge drop in revenue. This has made it impossible to operate the hotel as a viable concern."
Staff and customers with outstanding bookings remain an "immediate concern" for the business, the hotel said.
The Cardiff Coal Exchange added it hopes to reopen once the ongoing legal proceedings are resolved.
A spokesperson at Eden Grove Developments told The Caterer: "Based on the information we have obtained over the last two weeks, this hasn't really surprised us which is why we were confused by the statement the operator released last week assuring customers that future bookings were secure.
"We are now supporting staff and guests as we try to establish who the administrators are so we can begin active discussions to minimise disruption.
"Plans for the development of the site that were due to be released this week will be postponed by a week whilst we deal with this, but we will shortly be announcing our development team. We will be meeting with staff tomorrow (18 January, at the time of writing) and will release a further statement following that."
Leonard Curtis was appointed by Coal Exchange Operations LLP to assist with placing the LLP into creditors' voluntary liquidation.
All employees were made redundant on 17 January and Leonard Curtis has engaged employment agencies to assist with redundancy claims and associated requests.
