GENOA - The restaurant and deli at David Walley's Resort Hot Springs and Spa were closed this week and employees laid off because of financial problems with the resort's lenders, according to Gary Grottke, president of Quintus Resorts.
"It's a short-term problem," said Grottke. "We've had problems with our lenders, and we're very tight on cash."
Grottke, whose company Quintus Resorts oversees Walley's Hot Springs and the Hanelei Resort in Hawaii, said Walley's restaurant and deli will be closed for three to four weeks.
"November is always a difficult month," he said. "December is much better because of the holidays."
Closing the restaurants meant putting about 30 employees on forced leave without pay for the duration of the closure.
A memo obtained by The Record-Courier said employees who have been laid off will be owed the amount of their last paychecks.
"The company will owe you this amount and will hopefully be able to pay you when conditions improve," the memo with Grottke's name said.
Quintus also permanently terminated five administrative and accounting employees at Walley's.
"It caught us off guard," Grottke said. "I'm apologetic. No one likes doing this, but we were whip-sawed. We thought we had an agreement with our lenders, and it didn't happen."
Grottke said he feels for the employees who were laid off and doesn't know if those put on furlough will come back to work when the restaurant reopens.
"The reactions were mixed. Some of the employees were obviously upset, but some said they were glad to have a month off."
Worker Richard D'Anjelo said the company owes him $1,000 in wages.
He pointed out that neither the workers' landlords nor the grocery store will accept Grottke's promise to pay.
Grottke said his company had to take similar action with its resort in Hawaii.
The restaurant there was closed, and around 25-30 employees were also put on furlough.
However, Grottke stressed that both resorts are still functioning.
"Although some of the food services have temporarily shut down, the David Walley's Resort is still open. The hotel and the spa and the bar are open like normal, and we'll be doing some food service from the bar," he said.
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