Whitley Bay's The Rex Hotel falls into administration due to spiralling debts; The Whitley Bay promenade business had previously faced a winding up petition from North Tyneside Council.
Byline: Tom Keighley
A landmark North Tyneside hotel has fallen into administration, just weeks after facing a winding up petition from the local authority.
The Rex Hotel in Whitley Bay entered into administration due to "spiralling debts and difficult trading conditions."
Administrators Steven Ross and Ian Kings were appointed to the business on January 6.
Their appointment follows a winding up petition against the business, submitted to Newcastle upon Tyne County Court by North Tyneside Council.
The council declined to comment on the reasons behind the winding up petition which was issued at the beginning of December.
Baker Tilly confirmed the property asset was sold pre-appointment, and that the administrators have entered into a licence agreement with the purchaser of the building to allow trading to continue under the hotel's new ownership. All staff have retained their jobs following the move.
Popular Whitley Bay night spot Deep is also part of the hotel.
The Rex's website describes it as the "perfect hotel for the young and young at heart".
Conferencing and ballroom facilities at the venue, which overlooks the sea from Whitley Bay promenade, can hold accommodate around 500 delegates.
The business started life as the Waverley Hotel -- built on...
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