Legal uncertainty remains over Castlebar’s Welcome Inn Hotel

FΡilte Suite function room not part of the liquidation process, court hears


Edwin McGreal

Ownership issues at the Welcome Inn Hotel, Castlebar have impeded the liquidator for the well-known hotel from selling it on the open market, a court has heard.
A solicitor for the liquidator admitted such at Castlebar District Court on Wednesday last.
There were two applications before the court for the ad-interim transfer of the drinks license for the well-known property.
One was made by the liquidator, George Maloney, who was represented by solicitor Mark Woodcock of McDowell Purcell. The other was made by Ms Anne McHugh.
The court heard that while the bulk of the hotel is part of the liquidation, the function room known as the FΡilte Suite is not.
The FΡilte Suite is owned by Anne McHugh while the rest of the hotel was owned by the Welcome Inn Hotel Limited, which Ms McHugh was the nominee of for license purposes.  
When the hotel went into liquidation earlier this year, the FΡilte Suite did not therefore form part of that process, the court heard.
Solicitor for Ms McHugh, Tom Walsh, told the court that Ms McHugh owns the FΡilte Suite and had a lease to the Welcome Inn Hotel Limited for its use.
She is the nominee for Welcome Inn Hotel Ltd for the entire property, including the FΡilte Suite.
In recent weeks it emerged that the McHugh family could be set to take back control of the landmark hotel from the receivers. The Mayo News understands that Thomas McHugh and the receivers are close to reaching a deal. Mr McHugh is a nephew of Anne McHugh and he is a grandson of the late Tom McHugh, who built the hotel in 1962.
His father, the late Tony McHugh, and his aunt Anne McHugh, ran the hotel for many years.
The premises has been closed since it went into voluntary liquidation last February.
Mr Woodcock told the court last Wednesday that his client is happy to sell it to members of the McHugh family.
Despite this, Mr Woodcock agreed with Judge James Faulkner when the judge asked if the liquidator was ‘hamstrung’ by putting the property on the open market due to the ownership issues at the premises.
Tom Walsh said he was not in favour of the liquidator having the license transferred to him as it could mean if someone outside of the McHughs bought it, the building would be in two different ownerships.
Judge Faulkner asked if there was hope of ‘a happy ending’. Mr Walsh said he thinks there will be however Mr Woodcock said that a ‘limbo situation’ prevailed currently. He asked the judge to allow his application for an ad-interim transfer to Mr Maloney.
Judge Faulkner said he would adjourn the matter until August 17 in the hope that ‘negotiations would be accelerated’.
Mr Walsh concluded by saying he ‘needs certain issues to be addressed’ for his client, Ms McHugh. He also said he was representing a company seeking to purchase the property.
He did not explain what the issues were but said if they were resolved, the license issue would come to a ‘swift conclusion’ where he would withdraw Ms McHugh’s application.
The matter was adjourned to the vacation sitting in Ballina on August 17 next.
The closure of the hotel earlier this year led to the loss of 20 full-time and 25 part-time jobs.