Troubled White Sands Hotel has been put up for sale after going into receivership with substantial debts, it was revealed yesterday.

The staff of around 20, who have not been paid since December, now face an anxious wait to see if a new buyer will come in and save their jobs.

Angry staff said yesterday they felt badly let down by the Paget hotel's American owner James Dwyer and were in the dark about whether they would get the money they were owed and redundancy cheques.

Bank of Butterfield called in the receivers at the beginning of the month after running out of patience because New Jersey-based Mr. Dwyer failed to keep up with loan payments.

Newspaper advertisements appeared yesterday announcing the sale of the 32 room South Shore hotel, which also has three oceanfront cottages.

The bank's receivers PricewaterhouseCoopers said six potential buyers from Bermuda and overseas had been shown around the property and all wanted to keep it going as a hotel.

Receiver D. Geoffrey Hunter said he was hopeful that if a quick sale was achieved, the hotel could still open in time for this year's tourist season and the staff would be paid.

Acting Tourism Minister Alex Scott said yesterday he was saddened by the news and promised Government would do what it could to help the White Sands staff recoup the outstanding wages.

The hotel has been closed since January for the winter and staff were originally told it would re-open in March. This was put back to April.

Staff told The Royal Gazette yesterday that management had still not told them officially what was happening.

Mr. Hunter said: “We are going through a sale process to sell the hotel as quickly as we can with a view that hopefully it will continue operating as a hotel as soon as possible.

“We've got appraisals performed and have taken a number of potential purchasers through the property. The potential purchasers we have spoken to all want to re-establish it as a hotel.

“There are a number of proposals that would expand the tourism base of the Island. If we get a decent offer, we would like to be able to turn the property round right away and reactivate the hotel for the start of the season.

“There are a number of long-standing employees, some of whom are owed considerable sums of money, and we hope the sale will generate sufficient funds to pay off all the employees and the creditors.” One staff member told The Royal Gazette yesterday: “The staff feel badly let down more than anything else. The staff stood by Dwyer through all of this and no one went running to the Press.

“They have come to work and went to cash their cheques and couldn't because there was no money in the kitty because nothing was being sent down from head office in New Jersey.

“We've been completely given the run-around by Dwyer. No one can get a hold of him and he never returns telephone calls.

“There are a number of long-serving members of staff dating from the time of the Browns and one member has been here for 35 years.

“No one has been told officially what is going to happen. Its all been on a wing and prayer and we've been kept completely in the dark as to whether our jobs are still there

“Dwyer said to us in November he would never sell White Sands and now he has completely let us down. The staff more or less feel White Sands is buried now. All they want is their money now.”

He said the company had continued to deduct insurance payments for staff despite not paying premiums to Argus Insurance, resulting in staff frequently having no health cover.

Mr. Scott, who is standing in for Tourism Minister David Allen, said last night: “The Ministry has been trying to get a meeting with the principals for the better part of the last week to confirm the status of the property and haven't been successful.

“Obviously we are saddened to hear it has gone out of business for the moment and is reported to be in receivership. We are very keen to meet the principals to find out what the management's disposition is towards the welfare of the staff.

“It is most important that any decision takes into consideration the staff and what I am hearing is that staff have not received the best treatment and Government would want to use its energies to address and rectify that if possible. “The Minister will be back on Monday and hopefully the next step will be suitors interested in taking over the property and returning it to an active operation sooner rather than later.

“That would be in the best interests of the guests and hopefully the existing staff will be given first consideration by any new managers.” Mr. Dwyer was given an exclusivity arrangement with Forte, the former owners of the Belmont Hotel in Warwick, but this was cancelled after he failed to put pen to paper. And despite expressing an interest in buying Sonesta Beach Hotel, Mr. Dwyer failed to complete the deal.

Hotel manager Esan Frederick said yesterday he could not comment and Mr. Dwyer did not return calls to The Royal Gazette.

Action Opposition Leader David Dodwell expressed dismay at the latest blow to Bermuda's tourism prestige.

‘'It's not surprising to hear this news although it is disappointing to hear that we've lost another hotel. The Opposition is particularly concerned for the welfare of staff members and would appeal to the community to help them in anyway possible,” he said.

“At least the uncertainty is over and hopefully a way forward will emerge for the hotel. We need a positive result for all concerned, including Bermuda, to reverse the events at White Sands over the past year. It's my hope that the sale process can be moved as quickly as possible.”