Jobs lost as North East hotel and bar is placed into liquidation

Multiple jobs have been lost after the company behind a North East hotel and bar were placed into liquidation, a news report in the local business media has been able to reveal.

The Avalon Bar and Hotel traded from 26 to 32 South Parade in the seaside town of Whitley Bay. Despite being a very busy place for four years, the venue was significantly affected by the 2008/2009 recession.

A number of other bars and hotels on the same street closed down and a couple of bars lost their licence. While Avalon "managed to keep going and pay the bills", the bank insisted it re-mortgage the property.

The tourist trade "disappeared totally" along with overnight trade from contractors. It was at this point that Avalon diversified into emergency accommodation for local authorities "to create a revenue stream".

While payments from the local authorities "were guaranteed", it was "extremely erratic" and could sometimes take up to six months to come through.

Ten jobs have been lost as a result of the company ceasing trading.

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