Administrators have been appointed following the closure of the Beveridge Park Hotel in Kirkcaldy.
They are looking for a buyer – and working with 12 staff who have been made redundant.
The doors were closed at the 31-bed hotel on Monday by owners Bobby and Gina Kumar after 13 years at the helm.
Tough trading conditions and ill health were factors in their difficult decision.
The took a number of steps including reducing headcount, eliminating non-essential costs and injecting personal monies to keep the hotel going.
They also signed up with online booking company provider Oyo Technology and Hospitality (UK) Limited in an attempt to reverse the downward trend in income.
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Blair Nimmo and Geoff Jacobs of KPMG LLP were appointed as joint administrators this week.
In a statement, the administrators said the business had encountered financial difficulties for a number of years and recently, with the Scottish hospitality industry as a whole suffering challenging trading conditions, it had “experienced a far greater reduction in turnover levels and increasing cost pressures.“
The administrators stated: “The director explored various options, but ultimately concluded that sufficient funding could not be secured to address the company’s liabilities and that there was no other option than to place it into administration.”
Mr Nimmo added: “We will work with all affected employees and the relevant government agencies to ensure a full range of support is available. We will also now be looking for a purchaser for the Hotel and its assets.”