The management of Odu’a Investment Company Limited has shut down one of its subsidiaries, Lafia Hotels, Ibadan.
The hotel located along Abeokuta Road, Apata in Ibadan was closed down following the hotel’s financial challenges which include backlog of workers’ salaries, huge debts, and non-remittance of statutory commitments, such as VAT and WHT utility bills.
Victor Ayetoro, head, Corporate Affairs of the Company, said in a statement that the closure became necessary to enable the Group kick starts a new strategy to reposition the hotels in the conglomerate’s chain.
“Odu’a Investment Co. Ltd, which is the sole owner of the hotels, had on many occasions rescued the hotels by releasing funds for renovation purposes and settling some of the outstanding hotel debts in past years” he noted.
The interventions did not yield fruits in the case of Lafia, the statement added. The company assured the public that third party claims would be reviewed and sorted out while the staff would receive their entitlements as may be agreed after ongoing discussions.
Other Odu’a hotel subsidiaries are Premier Hotel, Mokola, Ibadan and Airport Hotel, Ikeja, Lagos.
