Ten jobs lost as hotel goes into liquidation

The Avalon Hotel, in South Parade, Whitley Bay.

The Avalon Hotel, in South Parade, Whitley Bay.

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Ten jobs have been lost after a Whitley Bay hotel went into liquidation.

The biker-themed Avalon Hotel, in South Parade, had been a popular stop-off for visitors after it opened in 2004.

It will be interesting to see how South Parade moves on in years to come

Greg Whitehead, insolvency practitioner with Northpoint

But a recent decline in trade saw it used by North Tyneside Council for short term accommodation for young adults.

The hotel, which had been up for sale before going into liquidation, was run by Mike Farwell.

In 2008, he bought the adjoining property – the former Conservative Club, – and created The Trojan Rooms, a function and music venue which proved popular with residents and visitors.

However, Mr Farwell said the hotel suffered during the recession and smoking ban.

And several other bars and hotels in South Parade – once renowned worldwide for its night life – closed down.

A drop in tourist trade and a lack of overnight business from contractors alsohad a big impact on the hotel.

Greg Whitehead, an Insolvency Practitioner with Newcastle firm Northpoint, was appointed Liquidator earlier this month.

Mr Whitehead said: “This cessation of trading and liquidation with the loss of ten jobs reflects the gradual decline in recent years of similar businesses in the immediate area.

“It will be interesting to see how South Parade moves on in years to come. As a local to Whitley Bay I hope it can be regenerated in some way.

“I have asked Lambert Smith Hampton in Newcastle to deal with a sale of the property.”