Popular tourism spot Fairmont Zimbali Resort in KwaZulu-Natal, Ballito, will remain closed after making the announcement on Thursday that they have entered business rescue.
The tourism industry has been hit hard due to the restrictions and limitations brought by the Covid-19 pandemic. Many accommodation establishments have struggled to keep their head above the water.
Fairmont is known as a tranquil retreat for many city residents and tourists. They have made the decision to enter business rescue to safeguard the interests of all their stakeholders.
In a statement on Thursday general manager, Wayne Krambeck said: "The consequent stagnation in a global economic activity together with the South African government-imposed national state of disaster has affected negatively on our business."
He said the resort faced unprecedented situation despite having huge growth between November 2019 into March 2020.
Krambeck did note that they did support the government's and President Cyril Ramaphosa's decision to initially go into lockdown but the prolonged closure has hampered them greatly. Leaving them no alternative but to apply for business rescue.
"The losses that will be incurred in a gradual return to normality, with ongoing uncertainty and the possible threat of further restrictions, is just not commercially viable."
The business rescue practitioners will develop a rescue plan to ensure the best way forward and communicate with all stakeholders to plan a way forward.
Media representative Julia Unger said Fairmont Zimbali and Resort will keep stakeholders and the public updated on any further developments.
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