A new management company is being formed to run the Cherry Orchard complex as a block of flats.

Residents were given the news last week, but owner Robert Gillings assured them they need not worry about the future.

A disagreement over charges at the complex led to the liquidation of Cherry Orchard Apartments Ltd (meaning Chequers bar, restaurant and function operations and the time share business closed), and then last week of Cherry Orchard Management (managing the residential apartments).

A liquidation meeting on November 30 - to explain the operation of the new management company - has caused uncertainty about whether the building will be closed.

Some 22 leaseholders of apartments took the owners to the Isle of Man Rent and Ratings Commission in May 2014 over ’excessive’ charges. In July, the tribunal said leaseholders should be repaid £89,000 for over charging between 2010 and 2013.

But Mr Gillings has told Isle of Man Newspapers in previous reports the Cherry Orchard’s evidence that there was no over charging was not taken into account. He said the findings of the original tribunal were ’unfair’ and subsequent tribunals refused to overturn their findings.

The owners have consistently objected to this award, pointing out that the management charges at the complex were less than the average management charge in the village for similar accommodation once you deducted the services such as heat and 24 hour reception.

It has been calculated that the other similar blocks had an average service charge in 2016 that was 46 per cent greater than that at the Cherry Orchard.

Mr Gillings pointed out that liquidation requires a 75 per cent shareholder majority and as Robert Gillings only holds 62 per cent, the company can only be voluntarily liquidated if many leaseholders agree. The meeting is primarily a legal requirement.

He added: ’The whole thing has been a complete and absolute disaster. 24 people have lost their jobs, 130 people their timeshare and what has been gained? We need a clean sheet of paper and start again with a little goodwill.’

Are residents likely to be made homeless? ’I do not believe so. I really believe that everyone has had enough and with a little compromise and common sense everything can be put into place’’

He added: ’The Cherry Orchard did charge a higher service charge than others in the village, but it provided 24 hour heat 365 days a year, a 24 hour reception service etc and it costs a great deal of money to do so, which the tribunal has refused to accept.

’Being unable to recover its costs the hotel has had no choice but liquidation.’