A Plymouth hotel owned by the parents of Dragons’ Den star Deborah Meaden has ceased trading with the loss of about 60 jobs and dozens of weddings cancelled.

The three-star Moorland Garden Hotel, on the fringe of Dartmoor between Plymouth and Yelverton, has been shut throughout the coronavirus pandemic with staff on furlough.

Ina letter to customers who had booked events hotel management said the business will now cease trading, with the building being sold, and bookings can’t be fulfilled not deposits refunded.

It is understood that nearly 60 couples who have booked events are being asked to contact insurers or credit card companies to reclaim deposits.

The Moorland Garden Hotel on he edge of Plymouth

The 1930s hotel has been owned by Brian and Sonia Meaden, parents of the TV celebrity and former Strictly Come Dancing competitor Deborah Meaden, since 2011.

They changed the name from Moorland Links and carried out an extensive and expensive refurbishment of the property, raising the quality of the ballroom, Wildflower restaurant and 44 en-suite bedrooms.

But they put it on the market in 2019 seeking £1,950,000 and had hoped to sell it as a going concern, thus keeping the hotel open.

But it is understood the building has been bought for a lower sum, due to its value being cut during the coronavirus pandemic lockdown.

The new owners are understood to want to convert the building, with its views over Dartmoor, into something else.

One staff member said more than 60 workers, including management, had lost jobs and only found out during the weekend of August 1 and 2.

Deborah Meaden
Dragon's Den star Deborah Meaden. The Moorland Garden Hotel in Plymouth was run by her parents Brian and Sonia Meaden

And hotel bosses said they could only extend their “best wishes” to couples affected by what they described as “devastating news for everyone involved”, including those staff who are being made redundant and the company directors, who may stand to lose thousands of pounds loaned to the hotel to keep it afloat.

Documents filed at Companies House reveal the hotel had been loss-making for years and was propped up by bank borrowings and injections of cash from directors, including Mr and Mrs Meaden. The documents show the business was continually in the red and that directors had put more than £1million into the venture, as loans, to keep it going.

The Moorland Garden Hotel Ltd company started trading in 2011 and expected to make a loss in the first couple of years. But though the losses diminished annually, it remained in deficit every year.

Management explained that going into the lockdown period, the hotel had been expecting to honour all bookings, but was then forced to close and had no income for months.

Documents reveal that annually the business took more than £100,000 in non-refundable deposits for events. With wedding deposits being accepted between £200 and £1,000 depending on the scale of the nuptials, it is likely tens of thousands of pounds will not be returned to couples whose big day has been cancelled.

People who had booked events were asked, via a letter sent out to them by management, to contact insurers or credit card companies to reclaim deposits.

The letter to customers said: “As you might be aware, the company has been seeking to sell its business as a going concern with a view to business at The Moorland Garden Hotel continuing.

“However,it has become apparent that on completion of the sale of the hotel the buyer plans to convert the building for another use, so the company will cease to trade as a hotel and it will therefore not be in a position to fulfil your booking.

“The building is being sold at a significant loss affected by recent events and is not able to return your deposit payment(s). The company is reviewing its creditor liabilities and next steps in that respect,therefore in first instance you will need to speak with your event insurer or credit card company about reclaiming any deposit paid.

“We appreciate this is not the news you wanted to hear and how upsetting this may be, so this has been prioritised today so that you have the maximum time available to make alternative arrangements for your wedding. We wish you ever success with booking an alternative venue and for your event.”

Ina statement to Business Live, the hotel added: “Prior to the mandatory closure of the hotel in late March the ability to service all of its weddings, events and hotel stays was clear.

How to contact William Telford and Business Live

Business Live's South West Business Reporter is William Telford. William has more than a decade's experience reporting on the business scene in Plymouth and the South West. He is based in Plymouth but covers the entire region.

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“However the switching off of revenue to zero overnight meant it had to borrow further to meet costs which didn’t go away, and despite the furlough scheme and other significant Government initiatives and support from Barclays Bank the hotel is being sold at a significant loss and is unable to return any deposit payments.”

It said the company is reviewing its other creditor liabilities with its professional advisors.” In 2019 it still owed the bank more than £500,000.

The statement concluded: “This is obviously devastating news for everyone involved, clients, staff and the company directors. The company prioritised letting the wedding couples know to allow maximum time for making alternative arrangements. We do extend our best wishes to them all for their future.”

The hotel’s closure comes less than two months after the closure of another popular wedding venue on the rim of Plymouth: Langdon Court.

More than 20 staff lost their jobs and 27 weddings had to be cancelled after the Grade II listed South Hams venue went into administration.