Hundreds of people have lost their jobs days before Christmas as an upmarket Virgin hotel shut suddenly.
Staff at the Virgin Hotels in Glasgow’s Clyde Street were told their flagship luxury branch which opened in August, would close with “immediate effect” with hundreds left in limbo as to whether they will be paid or not.
Unite Hospitality, which represents workers at the hotel, confirmed the closure.
Posting on X, formerly known as Twitter, the union wrote: “Our members at @virginhotels in Glasgow, have just been informed that the hotel is to close with immediate effect 6 days before Christmas.
“The CEO flew in from the US but couldn’t even answer whether workers will get paid for hours worked.”
Staff were reportedly told of the hotel entering administration in a meeting on Tuesday morning before being immediately escorted from the hotel grounds.
It is currently not possible to book a night’s stay on the Virgin Hotels website.
It is understood that the company which ran the hotel, V Hotel Glasgow Limited, had insufficient funds to ensure that ongoing operations could continue.
Bryan Simpson, lead organiser of Unite union, said: “The way in which workers at Virgin Hotels have been treated by the company is outrageous.
“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 6 days before Christmas.
“Senior management couldn’t even confirm whether workers would be paid wages for hours worked.
“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 from Virgin Hotels, said: “Lloyds Developments Limited – the owner of Virgin Hotels Glasgow, which Virgin Hotels has a management contract with – has financial problems and on 1 December its lenders put it into administration.
“As a result, the directors of V Hotel Glasgow Ltd, the employer and operating company in respect of the hotel, are being advised by FRP Advisory LLP as they place that company into liquidation. These financial issues mean that the hotel cannot continue operating and now has to close.
“Virgin Group tried to find solutions, including offering to purchase the hotel, to keep the hotel open, keep the team in employment and ensure the completion of the development of the hotel, creating something the City of Glasgow could be proud of.
“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.
“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.”
Blair Nimmo, CEO of Interpath Advisory and joint interim manager, said: “As joint interim managers, we have not been involved with the trading or closure of the hotel but 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.”
Geoff Jacobs, managing director at Interpath Advisory and joint interim manager, added: “We will focus our efforts on working with stakeholders to facilitate a sale of this significant and attractive property for the benefit of the creditors of Lloyds Developments Ltd.”
