Glasgow-based hotel, hostel and apartment operator, Mckever Group has been placed into administration, after debts started to spiral out of control.
After buying the Gables Hotel in Gretna Green in 2008, the founder Alistair McKever borrowed a total of £70m from banks to cover its upgrading and expansion plans. Mr McKever has lost £30m of his own money to the business.
The company also owes HM Revenue and Customs £4m in overdue taxes.
Mr McKever, who established the business in 1982, is trying to save the 600 employees at 20 hotels from redundancy.
Accountancy firm BDO Stoy Hayward have been brought in to assess the options for the business, which is being run as a going concern.
Mr McKever believes it will prove difficult to sell the business due to the bad press surrounding the hostels and apartments used to house the homeless. This service accounts for 10% of the group's business.
Community groups have made complaints about the residents' anti-social behaviour, which has been due to a lack of support.
BDL Management have been hired by the administrators to manage the day-to-day operations of the properties.
