Dozens of couples could be unable to claim back deposits for weddings booked at a recently bankrupt hotel – because their cash was used to keep the struggling business afloat.
People planning to tie the knot at Elgin’s Mansion House Hotel each paid £650 up front to secure the venue for their special day.
But, with the hotel last month being declared bust “as of the end of October”, some who booked between then and March have been advised their money will not be returned.
One couple received a letter telling them “it would appear that the deposit may have been used in other business transactions.”
Accountant in Bankruptcy, which is Scotland’s insolvency service, said that appeals would be considered on a “case by case” basis but conceded it was possible that dozens would be affected.
The group said it would not be able to provide exact figures until people started to submit claims, and urged couples to do so.
One pair from Lossiemouth, now living in Edinburgh, were among many who booked their wedding while court proceedings were under way.
They have since been in touch with accountancy firm Wylie and Bisset, which has been appointed to examine the hotel’s books, in the hopes of clawing back the deposit.
But the couple have been told they will not get the money back as the £650 has been spent elsewhere.
The frustrated bride-to-be said: “We have been trying to sort out flight and hotel changes for family members, now we’re been told we won’t get our £650 back as we booked our wedding between October and March.
“I am disgusted that the hotel was allowed to continue trading and attend the Wedding Fair in Elgin in February promoting weddings there.
“People have been let down and I’m sure there are some in a much worse situation than we are right now.”
The letter from Wylie and Bisset states that the Mansion House Hotel has been declared bankrupt “with effect from October 31, 2017”.
The letter says: “If you paid prior to then, you can submit a claim in the sequestration, however if the payment was made post this date then you will be unable to submit a claim.”
A spokesman for Accountant in Bankruptcy added: “If Wylie and Bisset have said those deposits won’t be returned then that is the current situation I’m afraid.
“This will depend on when the deposit was paid, and we are not going to know how many people are involved until they start making claims to Wylie and Bisset.
“I would strongly urge affected parties to register their interests soon.”
Jimmy Bonella, a railway worker from Elgin, ploughed his £4,000 savings into a dream day at the Mansion House with fiancé Charlene Harrold this September.
He has now had to rearrange the date and changed the setting to the Banff Springs Hotel, but yesterday said he is hopeful of recouping the money paid to the Elgin hotel through his bank.
Moray MP, Douglas Ross, described the situation as “shameful”.
He said: “This is devastating news for couples who have not only seen their wedding plans thrown up into the air, but now a deposit they paid in good faith may not be paid back.”
But former owner David Baker insisted that the dire situation was one which came as a shock to him, as he believed he could pay off a £90,000 VAT bill before last month’s bankruptcy hearing.
And Mr Baker suggested that couples who paid via credit card should be able to claim their deposits back.
