More than 100 jobs lost as new Glasgow Virgin hotel closes

Glasgow's Virgin Hotel has closed with immediate effect

More than 100 jobs have been lost after a Glasgow hotel was forced to close just four months after it opened.

Staff at the Virgin Hotel on Clyde Street were informed following a meeting with the firm's chief executive on Tuesday.

It comes weeks after the company which owns the building called in administrators.

About 130 workers have lost their jobs due to the closure.

The 240-room hotel on the banks of the River Clyde opened in August, offering guests the chance to "sample [Glasgow's] rich cultural heritage and warm hospitality".

But its owner Lloyds Developments Limited - which Virgin Hotels has a management contract with - was put into administration by its lenders on 1 December.

And as a result, the directors of V Hotel Glasgow Limited - the employer and operating company in respect of the hotel - were advised to place it into liquidation.

Staff treated 'outrageously'

Bryan Simpson, hospitality organiser for Unite, said staff had been treated "outrageously" and added it was unclear whether they would be paid for the hours worked before Tuesday's meeting.

He said: "Our members were told today by the CEO that the hotel would be closing with immediate effect, without the required notice or consultation, all just six days before Christmas.

"This isn't just morally reprehensible, it may be unlawful and we will be doing everything in our power to ensure that these workers get the wages, severance packages and compensation that they deserve."

A spokesperson for Virgin said "every effort" had been made to secure the future of the hotel, including lodging a bid to buy the building, but that offer had been turned down.

They said Virgin Group and the hotel owners were committed to paying staff for every day they have worked this month.

And they added the hotel hoped to be able to reopen if the building passed into new ownership and said former staff would be given "priority" for new roles.

A statement said: "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.

"The Virgin Hotels team continues to have great ambitions for managing the hotel in Glasgow and looks forward to re-opening once a new owner is in place. 

A post on the hotel's Instagram page added that guests will be contacted about future bookings.

It is now expected the hotel will be listed for sale.

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."