Seven jobs have gone with the shutdown of the Lundin Links Hotel, amid warnings in the last couple of years that trade was slipping.
Accountants confirmed the three-star hotel ceased trading on January 10 after “a difficult period”.
A meeting of creditors is due to take place this Friday.
It’s understood the Leven Road outlet had been running at a reduced capacity, with a small number of staff, for some time.
Owner Martin White, who took over the premises in 2010, reported a dwindling of business and had appealed to the community to make greater use of the hotel, while he also unveiled a controversial plan to redevelop it as retirement homes.
A public meeting, attended by over 70 people, insisted the facade, listed by Historic Scotland, should be retained.
Eileen Blackburn, partner and head of business recovery at French Duncan LLP, said: “The hotel employed seven staff, all of whom have been advised of the situation and have, regrettably, lost their jobs as a result of the closure.
“I have been instructed to assist in calling a meeting of creditors, with a view to the company being placed into liquidation on January 24.
“No decisions regarding the sale of the hotel have been made as yet and this will happen once a liquidator has been appointed at the meeting of creditors.
“It is particularly regrettable, given its long history and its landmark building, that the closure of the Lundin Links Hotel has resulted in this loss of jobs.
“This unfortunate closure provides further evidence that trading conditions are challenging for many operators in Scotland’s hospitality sector.”