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Hôtel Shediac, a five-star hotel in downtown Shediac, has declared bankruptcy.
The first meeting of creditors will be held on Nov. 9, according to the notice.
Owner Francis Brun could not immediately be reached for comment.
But property records show the 60-room hotel has been in financial difficulty for years, with a number of liens from contractors and judgments against it, including one last fall by the Canada Revenue Agency worth $521,330.71.
Brun’s construction company, Francis Construction, filed for bankruptcy about eight years ago, not long after the hotel opened. It owed more than $7 million, the trustee handling that bankruptcy said at the time.
‘Tough situation’
Hotel general manager Nadine Robichaud said she couldn’t provide any information about the financial situation, directing inquiries back to Brun.
But she confirmed the hotel is now in the hands of trustees.
Robichaud, who has worked at the hotel since it opened, said it’s been difficult for the roughly 45 full-time and part-time employees since the bankruptcy took effect on Oct. 23.
“It’s a very tough situation to be in,” she said.
“Everybody’s pulling together and, you know, working through it to make sure that we can make this as seamless as possible for our guests,” she said.
“We’re just trying to reassure everybody that we are still open.”
Events booked into 2025
The hotel has received “a few” panicked calls from people with bookings, said Robichaud. It has several events booked well into 2025, including hockey tournaments, Christmas parties, conferences and weddings, she said.
No one has cancelled yet, Robichaud said. “Once we, you know, we can reassure them that we are still in full operation and everything is moving forward, you know, everybody’s been very accepting.”
Staff are hopeful a new owner will take over and it will be business as usual, she said.
“It is a very nice hotel and we have a great restaurant, a great bistro serving Starbucks coffee. So, you know, we have a lot to offer for the town of Shediac.”
The hotel is also good for the economy, Robichaud said. “We host a lot of bus tours. We have travellers coming from Europe and all over. You know we are an international destination, especially in the summertime and even throughout the winter, we have a lot of sports and leisure travellers. We have a lot of corporate travellers that come into the area as well. So we’re hoping that we can keep that going.”
‘Great facility,’ mayor says
Mayor Roger Caissie said he is aware of the bankruptcy but has “no additional information to contribute.
“I can say that the Hôtel Shediac is a great facility and I hope that it continues to offer great hospitality,” he said in an emailed statement.
The Greater Shediac Sewerage Commission is among the hotel’s creditors. It’s owed more than $13,500, according to the documents.
Some of the others include Turner Drake & Partners Ltd., a firm of real estate consultants, counsellors and brokers in Halifax, which is owed $13,480, and PHD Eco-Air in Cap-Pelé, owed $5,972.
A couple of liens are listed as having been discharged, released or satisfied as recently as July, including Gaudet Landscaping Ltd., of Grand-Barachois, which was owed $136,896, dating back to April 2014.
The hotel and property were assessed at $3,748,100 in 2023, according to Service New Brunswick.
Staff taking it ‘day by day’
Robichaud said the hotel employees are taking it “day by day” for now.
“We have an amazing team of staff. They’re all here for the exact same goal — regardless if it’s the hotel, the restaurant, the bistro — we’re all here to serve our guests and our clients that come through, and they’re all working very hard at keeping it going.”
Officials from MNP Ltd., the trustee handling the bankruptcy, could not be reached for comment.
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