More than 100 people lose jobs days before Christmas as Virgin Hotels Glasgow closes just months after opening
The sacked workers plan to hold a rally outside the hotel in Clyde Street on Wednesday afternoon.
Wednesday 20 December 2023 14:16, UK
A plush Glasgow hotel is closing its doors four months after opening - leaving more than 100 workers out of a job just days before Christmas.
Virgin Hotels opened to guests in August, but on Tuesday staff were told it was closing with immediate effect.
It comes just weeks after the company that owns the building called in administrators.
Around 130 jobs are affected. A pledge has been made that all employees will be paid up to 31 December.
The sacked workers plan to hold a rally outside the hotel in Clyde Street on Wednesday afternoon.
Bryan Simpson, lead organiser for Unite Hospitality, said the way in which the staff had been treated was "outrageous".
He added: "Our members were told yesterday by the CEO (who flew in from Miami) that the hotel would be closing with immediate effect, without the required 45 days' notice or consultation, all just six days before Christmas.
"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 luxury 240-room hotel is on the banks of the River Clyde.
Building owner Lloyds Developments Limited, which Virgin Hotels has a management contract with, was placed into administration on 1 December.
Employer and operating company V Hotel Glasgow Ltd - which ran the hotel - has insufficient funds to continue operations.
As a result, the directors were advised to place the firm into liquidation, which has led to the job losses.
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The Virgin Group claimed it had attempted to secure the future of the hotel, including offering to buy the building.
James Bermingham, CEO of Virgin Hotels, 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."
It is hoped the hotel will reopen once a new building owner is in place.
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Blair Nimmo, CEO of Interpath Advisory and joint interim manager, said: "[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."
Acting on behalf of V Hotel Glasgow Ltd, FRP Advisory said Virgin Hotels has pledged to make up a shortfall in the business finances to ensure all employees will receive full wages up to 31 December.
Sarah Cook, of FRP, added: "We will also continue to support employees in making any further claims to the redundancy payments service."