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Glasgow Live
Glasgow Live
National
Holly Lennon

Glasgow restaurant ran up £650k loss in six months and 'owes thousands' to contractors

A city centre restaurant that closed suddenly six months after opening has been accused of failing to pay staff, suppliers, and contractors tens of thousands of pounds.

Bothwell House closed on Tuesday, just hours after staff were told they would be losing their jobs with immediate effect.

The restaurant and cocktail bar was opened by Aspirational Brands in September taking over the former Grill on the Corner site.

In the months since, the business generated a total loss of over half a million pounds, with owners pointing to the 'current economic situation', hybrid working, and the cost of living crisis for their failure to turn a profit.

However, it has been alleged the company has been failing to pay contractors and suppliers for several months, racking up bills that 'could go into six figures'.

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Jenny Barlow, who was brought on as general manager for Bothwell House, became concerned about the running of the business when her contacts began coming to her to ask when they would be paid.

She explained: "I was hired before they launched and shared with them a range of contacts with local suppliers that I've built up over the years.

"I brought in a lot of independent suppliers and the team worked really hard to make the venue what it was.

"Then the company stopped paying people. Suppliers for things like fruit and veg, wine, bespoke desserts, and plants to electricians, doormen, cleaners and design agencies, musicians, and PR companies are all still waiting to be paid with some left covering costs of over £10,000 themselves.

"I became the point of contact for people who were chasing their money because they were getting nothing from the owners. Contractors left work unfinished because they weren't being paid.

'"I began to speak up and question what was happening and then I was dismissed. I'm now facing complete silence. I'm owed upwards of £600 including money that was taken for pension contributions that there's no record of."

The restaurant and cocktail bar was opened by Aspirational Brands in September (handout)

One supplier told Glasgow Live that he is owed £14,000 and that he believes he has 'no chance of recovering it'.

He said: "We have had a very bad experience with the brand. I managed to get some money by “kicking off” but our bill is at 14k - they left people all over Glasgow with debts which have to be six figures.

"I know there's no chance of recovering anymore for me but I am genuinely p***** off and would like to know how you protect other honest business operators from what is one of the worst cases I've seen in 20 years?"

Ian Cairns of Cleaning Solutions Scotland said he is owed £3,500 from Aspirational Brands and is now scrambling to find work for one of his employees who was let go from Bothwell House without notice.

He explained: "We're still waiting on payments from as far back as February which were due to be paid in March. I was told that it would be paid in full but I've heard nothing.

"I've contacted the finance department as instructed but my complaints have fallen on deaf ears.

"I had a full-time cleaner working Monday to Friday who was let go without notice so I'm now left trying to find her other work so she has an income. As well the staff we have to pay, the money is to cover materials, supplies, and equipment we put into the business.

"We're a small family business so the money is really important to keep us going.

"We work with good people so this isn't a situation we regularly experience but when we do it's usually in the hospitality industry."

Ian said he hasn't been contacted by Aspirational Brands about any form of repayment.

A spokesperson for Bothwell House said the decision was taken to close the site to ensure the outstanding balances owed to suppliers didn't increase.

They added that "any supplier or contractor with an outstanding balance has had a payment plan in place and has been receiving funds to reduce the balance".

A number of staff members spoken to by Glasgow Live said there were clear signs of trouble before they were called into a meeting on Monday and told they were being let go.

Several employees said they are owed money from the company, mostly unpaid holiday pay.

Luke Robertson, a member of the floor staff, said: "When we opened there were live performers but that was stopped because we couldn't afford to pay them, the wine and cocktail lists were always changing because they couldn't afford certain things.

"The issues with our pay only arose in the new year when people started noticing they weren't getting the holiday pay they were entitled to. It was difficult to figure out because we were only ever given one payslip. I had asked several times for one for proof of income but they never materialised."

Cara, a member of the bar staff, said she too only ever received one payslip.

She added: "The one payslip I was given was just completely wrong, I had been underpaid and not given any holiday pay. I've been told that I'll be reimbursed for what I'm owed but whether that will happen or not, I'm not sure."

A spokesperson for Better Than Zero, who is working with laid-off staff, commented: "Hospitality workers are some of the lowest-paid and most vulnerable in the workforce. For the owners of Bothwell House to dismiss their workers without notice during a cost-of-living crisis is appalling.

"The company needs to communicate with its former workers, and fully reimburse them with all outstanding wages, holiday pay, pay in lieu of notice for redundancy, and all other funds owed.

"The owners still operate a number of hospitality venues around the country. We urge any workers experiencing issues at any workplace under the umbrella of ‘Aspirational Brands’ to get in touch with us."

A spokesperson for Bothwell House said: "We are truly sorry to see the site go and it was not a decision taken lightly.

"After spending in excess of £400,000 on the venue, and a further £100,000 in wages just to get the doors open. The business has not been able to convert to a profit from day one. Utilities have more than quadrupled. Pre-pandemic the monthly utility bills would have been in the region of £5,000, we have been charged in excess of £20,000 per month since opening.

"The site needed significantly more capital to get the doors opened. Upon gaining formal entry to the unit, it was identified there were a number of compliance issues which needed to be resolved, amounting to more than £100,000 above our allocated budget.

"The labour storages within the market have pushed wages higher. Food and drink costs have gone up circa 22%. This coupled with the low volume of sales, driven by factors such as the local offices adopting a hybrid working model and the cost of living crisis, has seen footfall in the area remain low.

"We can confirm the Limited company which employed the team is still live and not undergoing any form of insolvency, wages are all paid and up to date, PAYE, NI, and pensions will be dealt with in due cause, as we will need to look to our wider group for support.

"We are liaising with the pension provider to bring payments up to date. Each of the team members will receive pay for what they have worked during this payroll period, any outstanding holiday that has accrued, alongside their entitled notice period.

"We have fallen victim to the current economic situation as many of our competitors have, including others within Glasgow. It is with great regret we have had to take the decision to close and it is with even greater regret we have had to let the team go. We have amounted total losses in excess of £650,000.

"We are a family run business with no external finance or borrowings, we do not have the finances available to be able to support a loss-making site for a sustained period of time especially given the current economic circumstances. "

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