Scottish hotel operator PAG Hotels has gone into administration.
The company owns the four-star Auchen Castle hotel in Moffat, Dumfries and Galloway, as well as Castle Venlaw in Peebles.
It is understood that PAG's bank Santander called in KPMG to oversee the firm at the end of last month. Blair Nimmo and David Costley-Wood of KPMG have now been appointed administrators.
PAG paid £3m for Auchen Castle in 2008 in a sale brokered by Christie + Co. It was previously owned by Ann Skinner-Ter Smitte who ran and developed the business over the past seven years with her silent partner Cory Ter Smitte. The venue has traded as a hotel almost 60 years and comprises a cocktail bar, a restaurant and conference facilities. There are also staff rooms and a coach house, plus private parking for more than 60 cars and helicopter landing availability.
Castle Venlaw, which is set in 12 acres of woodlands and gardens, has 12 bedrooms and the Le Cépage restaurant.
Staff at the Auchen Castle declined to comment on the news. KPMG was not immediately available for comment.
By Neil Gerrard
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