THE closure of a high-end restaurant and hotel has been called a 'big loss' to a town.

Virginia House in Ulverston, home to restaurant Craig’s Kitchen, has stopped trading with 'immediate effect', its owners have said.

It is owned by Louise Sherrington and her husband Craig, who recently starred in the BBC cooking programme Great British Menu.

In a statement on Facebook the Virginia House owners said: “It is with great sadness and a very heavy heart that we must inform you Virginia House shall cease to trade with immediate effect.

“We have unfortunately succumbed to the current financial climate and our guest house, restaurant and bar are not financially viable.

“We’d like to thank all of our customers for their loyalty, support and custom over the past 3 1/2 years - we’ve has some great times and we hope you have had too.”

The Queen Street restaurant featured in the Good Food Guide and possessed two AA rosettes

Councillor Dave Webster, the mayor of Ulverston, said the closure came as a 'shock'.

He said: “It will be a big loss to the town.

“A lot of people will have gone there or come to the town especially to eat there. It was a great asset to the town."

He also paid tribute to chef Mr Sherrington. “He is a top, top chef and a great man," he said. "People will miss him in the town and I have no doubt wherever he goes next, he will do very well.”

The Sherringtons added they were not able to refund any gift vouchers.

They said: “For anyone asking about gift vouchers and deposits. We are unfortunately not in a position to make any refunds at this point in time, but that does not mean to say the company will not be able to in the future.”

They said financial dealing had been handed over to a liquidation company Begbies-Traynor and any enquiries should be directed towards them.

They added: “We fully understand how disappointed you will be and apologise sincerely for the current situation.”

Mr Sherrington refused to make any further comment when asked by The Mail.