Government insurers are forcing the Coco Reef hotel to close its doors at the end of the month, hotel director Andrea Jennings said yesterday.

Ms Jennings suggested that delays in repairs, associated with dealings with the insurer - Centurion Insurance Services - have been at the centre of recent problems at the embattled former Stonington Beach Hotel.

The hotel will now close on October 31 - not November 11 as guests and employees were originally told, she said.

And staff reacted with outrage to the news of that unexpected decision when they were told of it last Friday.

Hotel employees were unhappy with the suddenness of the decision and said it was the final straw in a long list of grievances they have against the management styles of hotel owner John Jefferis and Ms Jennings. Hotel staff held a sit-down strike this week to protest.

But Ms Jennings said, while the hotel attempted to fast-track repairs to Hurricane Fabian damages, it was ordered to stop by the insurance company which carries Government's collective policy for all its properties - including Coco Reef.

"When we lost the seawall (Centurion) did visit," said Ms Jennings.

"We then received verbal approval to make immediate repairs."

As the damage to the seawall presented some potential danger - and cost the hotel its beach access - Coco Reef went through the fast-track planning application process and received emergency planning permission to make repairs on September 25.

However, the next day a meeting was held between Government (as the property landlord), the insurers, Coco Reef owner John Jefferis and Ms Jennings.

The insurers said they had never given permission for the repairs to be made, and Coco Reef was "categorically told to stop work immediately," said Ms Jennings.

Unable to make repairs on the seawall, Coco Reef attempted to blaze an alternative path down to the beach, however, ended up cutting down several trees in the neighbouring woodland reserve instead.

EB Properties, which tends to the woodland reserve, is now suing Coco Reef for damages, and Coco Reef guests have no way accessing the beach.

The area is unsafe, said Ms Jennings, and Coco Reef is not offering the beachfront product they advertised.

"What do you do?" she said. "You have to close.

"It needs to be clear in people's minds that its not EB Properties," she continued.

"It's the Government insurers that have forced the hotel to close."

As the policy is collective, Ms Jennings said Coco Reef was told they cannot deal directly with the insurers.

Government, through the Department of Works and Engineering, must do so instead, she said.

Therefore Coco Reef sent Works and Engineering a copy of their plans in an attempt to quicken the process.

"We have not heard from the insurers or the landlord if we can resume work," said Ms Jennings, adding that even when Tourism Minister Renee Webb made calls to the insurers, those calls were not returned.

Ms Webb is currently off the Island as is Mr. Jefferis, and could not be contacted by The Royal Gazette on Thursday.