Staff at Hurst House on the Marsh - the 17-bedroom hotel in Laugharne, Carmarthenshire, which has just been placed into administration - were not paid during November.
The hotel closed yesterday after administrators Grant Thornton were appointed.
Head chef at the hotel, Dave Watts said that there were problems with cash flow from the owner, Jeremy Stone, a bioscience entrepreneur. The 30-strong team of staff were asked to work over the past weekend while Stone tried to out put together a deal to keep the business open.
"He agreed to pay all the staff for working Friday, Saturday and Sunday with cash through the administrators," said Watts. "They only received half of the cash required. Now the hotel has closed without paying any of the staff for the month of November."
It is the second time that the hotel, situated in a converted 16th century Grade II-listed dairy farm, has gone into administration. Stone bought it, with the backing of Lloyds TSB, after it went into administration in August 2008. It had previously been owned by the actor Neil Morrissey.
"The hotel itself is lovely, but there are so many underlying problems," said Watts. "There are reasons why it has no accolades or accreditation, For example, some of the windows in the property don't open and this is a basic requirement from the AA."
Grant Thornton are now looking for a new owner to buy the hotel as a going concern.
By Janet Harmer
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