Popular Broome hotel Kimberley Sands Resort and Spa shuts amid $4.5m debt

A popular five-star resort in the tourist mecca of Broome was plunged into voluntary administration this week leaving holidaymakers thousands of dollars out of pocket. The company behind the Kimberley Sands Resort and Spa in the the north-west holiday town called in administrators on Tuesday after revealing it owed $4.5 million to creditors, of which $2.5 million was debt to owners and $1 million to the Australian Tax Office. As a result it closed it doors earlier in the week leaving staff in limbo and sparking chaos for those who have upcoming bookings at the resort. Administrators are in discussions with potential buyers looking to preserve the hotel with Pitchers Partners Melbourne representatives Andrew Yeo and Gess Rambaldi appointed to the voluntary administration of Cable Beach Operations Pty Ltd. Mr Yeo said the company was examining all options for the sale of the business but confirmed the resort was closed “for the moment” and bookings had been put on hold, with future guests contacted by phone or email. “This is a five-star resort in a great town, and it is fully fitted out, with everything in place from the king-size beds down to the knives and forks and full commercial kitchen,” he said. “The message we hear from staff and guests is that this is a much loved place and we don’t want to see that lost. “The best result for everyone is to see this business keep running, so we are talking to potential buyers and talking to the landlord about the options for the resort.” Buyers, creditors or guests who were concerned were urged to contact Pitcher Partners Melbourne. A creditors meeting is due to be held on January 17.