Sign up to receive breaking news emails and get free real-time alerts delivered directly to your inbox.
Join our mailing list to receive complimentary email updates on the latest breaking news.
Just before Christmas, an upscale Virgin hotel unexpectedly closed, resulting in hundreds of people losing their jobs.
Employees at the Virgin Hotels on Clyde Street in Glasgow were informed that their high-end flagship location, which opened in August, would be shutting down immediately. This has left hundreds of workers unsure if they will receive their pay or not.
The closure has been confirmed by Unite Hospitality, the organization that represents hotel employees.
The union posted on X, previously called Twitter, stating that their members at @virginhotels in Glasgow were recently notified of the sudden closure of the hotel, just 6 days before Christmas.
The chief executive officer arrived from the United States, but was unable to respond to whether employees would be compensated for their hours worked.
Employees were allegedly informed of the hotel going into administration during a meeting on Tuesday morning and were then promptly escorted from the premises.
At present, it is not feasible to reserve a one-night accommodation through the Virgin Hotels website.
The company that operated the hotel, V Hotel Glasgow Limited, did not have enough funds to sustain ongoing operations.
Bryan Simpson, the main organizer for the Unite Union, expressed outrage over the treatment of workers at Virgin Hotels by the company.
Today, our CEO informed our members that the hotel will be shutting down abruptly, without giving proper notice or holding discussions, just six days before Christmas.
The higher-ups were unable to verify if employees would receive payment for their worked hours.
This behavior is not only morally unacceptable, but it may also be illegal. We are committed to taking all necessary actions to ensure that these employees receive their rightful wages, severance benefits, and compensation.
A representative from Virgin Hotels has stated that the owner of Virgin Hotels Glasgow, Lloyds Developments Limited, is facing financial difficulties. On December 1st, the lenders of Lloyds Developments Limited placed it into administration.
”
The employer and operating company of the hotel, V Hotel Glasgow Ltd, is being advised by FRP Advisory LLP as they enter into liquidation due to financial difficulties. This has resulted in the closure of the hotel.
The Virgin Group made efforts to find resolutions, such as proposing to buy the hotel, in order to prevent its closure, retain its employees, and guarantee the successful completion of its development. This would have resulted in a source of pride for the City of Glasgow.
”
“Regrettably, the creditors have declined the proposals made by Virgin and plan to continue with a sales procedure while the hotel is not in operation. This decision is a disappointment to Virgin Hotels, given the efforts dedicated by all involved in the hotel, and the potential impact on the staff employed there.”
The team at Virgin Hotels remains determined to effectively oversee the Glasgow hotel and eagerly anticipates its re-opening once a new owner is secured.
CEO Blair Nimmo of Interpath Advisory and joint interim manager stated: “As joint interim managers, we have not been involved in the hotel’s operations or its closure. We are aware that this may be a distressing and disheartening time for everyone involved.”
We sincerely hope that the hotel, a magnificent establishment located in the center of Glasgow, will be able to reopen and resume operations in the future under new ownership.
Geoff Jacobs, the managing director of Interpath Advisory and joint interim manager, stated that their main priority is collaborating with stakeholders to help sell the valuable and appealing property for the benefit of Lloyds Developments Ltd.’s creditors.
Source: independent.co.uk
