A flagship luxury hotel in Glasgow has closed its doors "with immediate effect" just six days before Christmas.
Staff at Virgin Hotels Glasgow were reportedly advised of the closure in a meeting on Tuesday morning.
Unite Hospitality, which represents workers at the hotel, confirmed news of the closure via social media.
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."
🚨 BREAKING 🚨
— Unite Hospitality (@FairHospitality) December 19, 2023
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.
The closure comes weeks after the company which owns the Virgin Hotels Glasgow building, Lloyds Developments Limited, fell into administration.
A spokesperson for Virgin Hotels said at the time that the proceedings had no impact on trading for the 240-room hotel, which overlooks the River Clyde on Clyde Street.
A Virgin Hotels spokesperson said: "We can confirm an administration process has started for Lloyds Development Limited, the current owner of Virgin Hotels Glasgow.
"Geoff Jacobs and Blair Nimmo of Interpath Advisory have been appointed as interim managers of Lloyds Development Limited.
"It is, however, very much business as usual for the hotel and our team, and we look forward to continuing to welcome guests and build on the hotel’s success.”
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Each Virgin Hotels brand has an independent owner with Richard Branson's brand operating the property under a hotel management agreement.
The spokesperson added: "This administration process is purely about the capital structure of the property."
Following the closure, Interpath Advisory issued a statement, which read: "Geoff Jacobs and Blair Nimmo from Interpath Advisory were appointed Joint Interim Managers of Lloyds Developments Limited (“the Company”) on 1 December 2023.
"The Company owns the property at 246 Clyde Street in Glasgow from which a hotel traded. The Company has no employees.
"There were third parties responsible for the trading and running of the hotel. Since their appointment, the strategy of the Joint Interim Managers was to understand the long-term intentions of these parties and other key stakeholders.
"The Joint Interim Managers have today been made aware that the Virgin Hotel Glasgow has unfortunately now closed, which will be immensely disappointing for all stakeholders."
Blair Nimmo, CEO of Interpath Advisory and joint interim manager, expressed his hope that the hotel - which is thought to have employed over 150 staff - can reopen.
He 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.
READ MORE: Luxury hotel 'reprimanded' by council over 'misleading' drinks prices
"Although the property is not actively on the market as yet, those with an interest should get in touch with the Joint Interim managers to register their early interest.”
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.”
“Virgin Hotels' heartfelt thanks and gratitude are to those employees, suppliers and guests who have been integral to the hotel’s launch in the City of Glasgow. Virgin Group and the owners are committed to ensuring employees are paid for every day they have worked this month.
“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. No other Virgin hotel is impacted – all other Virgin Hotels remain open and operating as normal as all Virgin Hotels are independently owned.”
Virgin Hotels Glasgow opened its doors back in August as the second European property from the Virgin Group, founded by Sir Richard Branson.
The launch came after Virgin Hotels Edinburgh was officially opened by Branson on Victoria Street in March this year.
Back in October, the hotel was 'reprimanded' by Glasgow City Council over ‘misleading’ drinks prices in its flagship bar and restaurant.
The council confirmed to The Herald that its trading standards team visited the hotel to provide “appropriate information to the licence holder”.
The visit was believed to have concerned the hotel’s policy of serving double measures as standard - rather than singles - at its Commons Club bar and restaurant.
Under The Consumer Protection from Unfair Trading Regulations 2008, it is fine for a licensed premises to sell double measures - 2 x 25ml - as standard, but the option for a single measure must also be available.
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