The Feathers Hotel in Ludlow has fallen into administration following a fatal outbreak of Legionnaires' disease at the premises last year.
Raj Mittal and Steve Stokes, partners at business advisory firm FRP Advisory, were appointed joint administrators to the three-AA-star, 40-bedroom hotel on 2 August 2018.
The administrators said the hotel suffered trading difficulties as a result of the outbreak in 2017 and subsequent investigation by Public Health England. The hotel, which employs 30 people, will remain open for business while options for its future are assessed. No redundancies have yet been made.
Mittal said: "The Feathers Hotel worked closely with Public Health England in the West Midlands and Shropshire to enable a staged reopening of the business. Unfortunately, the impact of the initial closure and restricted trading conditions resulted in severe cash flow difficulties, which led to the company entering administration. We're now working closely with the directors to evaluate all routes forward for the business over the coming weeks."
Elaine Brown, 69, from Merseyside died in August 2017 after suffering a stroke as a result of Legionnaires' disease, just days after she stayed at the hotel with her husband.
The historic hotel, which was built in 1619, closed for two months before reopening in November, although two bedrooms and the kitchen remained closed last month after Legionella bacteria was found for a second time.
The property was put up for sale for £2.65m in January by the Ceney family who planned to retire having purchased it in 2002 for around £1.75m.
Legionella organisms are commonly found within water in the natural environment and when levels of the bacteria are elevated in water supply systems there is a risk of contracting Legionnaires' disease within 14 days of exposure.