Galway property firm Edward Holdings has agreed to relinquish control of Ashford Castle to Bank of Scotland.

Both the famous hotel and between 3-4 retail units in the Eyre Square Shopping Centre have gone into voluntary receivership.

A spokesman for the firm said it was a sad day for Ashford Castle but said the move was the best thing for the hotel and is in the best interests of all stakeholders.

Ernst & Young will be appointed as receiver over Ashford Castle and Grant Thornton over the other secured assets.