Musicians claim thousands owed after Virgin Hotel Glasgow closure

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David TouleImage source, Andrew Perry
Image caption,

David Toule criticised the Virgin Hotel Glasgow for failing to pay performers

Musicians claim they are owed thousands of pounds by a Glasgow hotel which shut in December.

The Virgin Hotel on Clyde Street closed the week before Christmas, just four months after it opened.

Musician David Toule, who runs Curious Pig Entertainment and booked artists to perform at the venue, claims about £15,000 is owed to performers.

Virgin Hotels group said it tried to keep the 240-room hotel open but the owners refused their offers.

A spokeswoman said all Virgin Hotels were independently owned.

Mr Toule told BBC Scotland News he was owed £5,000 for booking acts and performing at the hotel.

"Some of these artists are owed more than £3,000 and they've been waiting a long time too," he said.

"Many of them were playing before there was any talk of a closure and they're still waiting to be paid.

"And all of our correspondence was with staff at the Virgin Hotels group, so that suggests they are even more liable."

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Glasgow's Virgin Hotel closed with immediate effect in December

He contacted administrators at FRP Advisory who said it would take nine months for a liquidation report to be published.

They estimated that there would "not be sufficient funds" to pay performers who are owed money.

"For us to have to resort to a liquidation process where we might end up with nothing is just appalling to even consider," said Mr Toule.

"It should never got as far as it did. The hotel group is responsible to step in and protect artists at risk."

Trusted the brand

Kevin McCrorie, a DJ based in Glasgow, claims he is owed thousands of pounds for 10 gigs at the hotel.

He said he trusted the Virgin brand and reputation when his payments were overdue.

"From working with hotel brands in the past, I know it can take a while to get paid," he said.

"But there were rumours that things weren't going well leading up to Christmas and yet they still went ahead with our bookings.

"The whole thing just reeks of dishonesty."

Mr McCrorie said he had not heard from owners on whether he would be paid what he is owed.

He added: "I feel Virgin should pick the slack up here as it's their reputation and their name."

Bryan Simpson, lead hospitality organiser at the Unite union, said: "Trust was placed in the Virgin brand that fees would in fact be paid out for the events worked, or cancelled with no notice, and that trust has been betrayed.

"It is only right that these artists be paid what they are owed for commitments made to the brand that has since reneged on their own obligations to pay the musicians what they are due."

Owners 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.

A spokeswoman from Virgin Hotels said they tried to find solutions, including offering to buy the hotel to keep it open, but the lenders did not accept.

She added: "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."