Eruptions send hotel broke

Ruapehu Bulletin, Volume 14, Issue 670, 21 January 1997, Page 3

Eruptions send hotel broke

Ruapehu's eruptions and their ef fects on the '95 and '96 were a major factor that led to the Ohakune Hotel company going into receivership just prior to Christmas. Arvee Holdings Limited, the company that owned and operated the Ohakune Hotel as well as a cafe bar in Morrinsville, went into receivership on 22 December. Ewen Spark, recei ver' s agent and present manager, said there were other factors but the major cause of the failure of the business was the eruptions.

He said while the hotel would eventually be sold and was on the market, the receiver's intention is to see the hotel continue to trade in the meantime and to sell it as a profitable business, to try to recover as much as possible for creditors. Mr Spark said his priority was to look after the locals, and that support from the community for the hotel was good. He said Rick Lowe, the proprietor prior to receivership, had decided not to stay on at the hotel and that he was not aware of what Mr Lowe's future plans were.