More than 100 jobs have become redundant with the closure of Virgin Hotels Glasgow in Scotland, just months after its opening.
Virgin Hotels Glasgow is a luxury 240-room property located on the banks of the River Clyde. It opened its doors in August 2023.
On 20 December, the hotel staff were informed about its closure with immediate effect.
This closure just came weeks after the building’s owner, Lloyds Developments, entered administration. Lloyds Developments Limited had a management contract with Virgin Hotels.
The employer and the operating company of the hotel, V Hotel Glasgow Limited did not have enough funds to continue operations, and consequently, its directors were advised to place the company into liquidation, leading to 130 job losses.
Bryan Simpson, lead organiser of hospitality workers union Unite Hospitality was quoted by BBC as saying: “Our members were told yesterday by the CEO that the hotel would be closing with immediate effect, without the required 45 days’ notice or consultation, all just six days before Christmas.
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“This isn’t just morally reprehensible, it may be unlawful and workers are taking action in order to send a clear message to their employer that they want their wages for the entire month of December, redundancy pay and compensation.”
The Virgin Group is claimed to have tried safeguarding the hotel’s future including lodging a bid to purchase the building.
Virgin Hotels CEO James Bermingham said: “Unfortunately, the lenders have not accepted Virgin’s offers and intend to pursue a sales process with the hotel closed.
“Virgin Hotels is very disappointed by this decision after the hard work everyone has put into the hotel and because of the impact it will have on the team that works there.”
FRP Advisory, acting for V Hotel Glasgow, confirmed that Virgin Hotels has committed to covering any financial shortfalls to ensure that all employees of the hotel receive their full wages up to the last day of December.
The hotel is expected to reopen once a new building owner is appointed.
Interpath Advisory CEO and joint interim manager Blair Nimmo was quoted by Sky News as saying: “[We] know that this will be a worrying and disappointing time for all concerned.
“We would very much hope that the hotel – a superb development, right in the heart of Glasgow – can be opened and operational again under new ownership at some point in the future.”