By Emma Grove

The Coniston Hotel has gone into administration with the loss of almost 60 jobs.

The hotel was just two weeks away from reopening as a four-star venue when the administrators came in on Tuesday, June 22.

According to owner Chris Richardson, NatWest bank's support for the project was withdrawn after a re-evaluation of its value as a building and as a going concern.

Mr Richardson and partner Ernie Berntsen say extra funds were needed to complete the project.

Before this could happen, the revalutation was ordered and it came out lower than a previous one at the beginning of the year.

The two men say they have invested £4 million of their own cash into the project and borrowed another £4.2m. They plan to complain about the bank's decision.

He added: "I've got no idea how long before we know if [the complaint] has been successful but people can be assured we are pursuing this with our legal team."

The 58 people made redundant are from all departments within the operational running of the hotel including the bar, restaurant, reception and house-keeping. Six staff working on the construction have been kept on.

The news will come as a blow to the town as it was hoped the hotel would be a boost to tourism.

Mr Richardson added: "The beds are made, the restaurant is laid out, there is food in the freezers and beer in the bar.

"The staff are absolute gems. Every employee was hand picked and dedicated, motivated, and just fantastic.

"I'm sorry for the community and all of the staff that have been involved. We want some answers ourselves - it's not over yet."

An employee, who found out on Tuesday about the job losses, said many of the staff felt let down.

The staff member said: "This has obviously been going on for some time - they shouldn't have let us carry on working there. They should have told us the truth. This was meant to be such a big thing for the community."

Mr Richardson said staff had been kept informed.