Quest Apartment Hotels has confirmed that Quest Launceston has been placed into liquidation after the franchisee declared bankruptcy.
FKS Investment VIC Pty Ltd, the company which trades as Quest Launceston, was placed into liquidation on May 14 according to ASIC.
In a statement, Quest Apartment Hotels confirmed they remained committed to maintaining a presence in Launceston despite the liquidation.
"Quest Apartment Hotels is aware that the franchisee of Quest Launceston has declared bankruptcy and the property has consequently gone into liquidation," it read.
"As the franchisor, we are committed to Launceston as a business and leisure destination and are working with the liquidator to assess our options for interim management rights."
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The confirmation comes amid reports on social media of guests at the hotel, with previous bookings, receiving last minute cancellations.
Launceston has been removed as a location from the Quest Apartment Hotels website while travel sites, including Wotif.com, have messages on their site about being unable to take bookings for the Launceston hotel.
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Quest indicated they were in the process of settling forward bookings with guests as well as any outstanding wages owed to staff.
"All forward bookings are being reviewed. Affected guests will be contacted and offered a full refund and assistance to source alternate accommodation if required," the statement read.
"Staff at Quest Launceston have been consulted by Quest Apartment Hotels and steps are being taken to settle any outstanding wages.
"We sincerely apologise for any inconvenience caused."
Daniel Jean Civil has been appointed as the liquidator.
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