£10 million hotel and conference complex Portland Spa called in administrators last Friday.
Richard Hill and Jane Moriarty are the two administrators from KPMG charged with finding a buyer.
Parent company Southwell Business Park will continue to oversee the 40-acre former defence site and Portland Spa, which employs 55 people, will continue to operate.
The 78-room four-star hotel only opened last October, although the conference centre, has been open since April 2007.
Hill says: “Unfortunately the amount of money required to convert part of the site for use as a hotel and conference facility, combined with a downturn in spending in the leisure sector has caused serious financial problems. However, the hotel has great potential and we have already identified a number of opportunities to improve performance. Our initial strategy is to stabilise the business and start to generate profits, which will increase the value and attractiveness of the hotel, the associated leisure facilities and the rest of the business park.”