Reaction - Virgin Hotel Glasgow Closure
- 5 months ago
Virgin Hotels Glasgow closes with immediate effect - four months after opening - as staff escorted from building
The decision for Virgin Hotels Glasgow comes just a week after The Scotsman reported the owners of the building had entered an administration process.
irgin’s premier hotel in Glasgow is set to shut with immediate effect – just four months after first opening.
Staff were told in a morning meeting on Tuesday before being escorted from the building.
The 242-bedroom hotel on the Broomielaw was due to close for trading on Tuesday. The move comes less than a week since The Scotsman first reported that Lloyds Development Limited – the company that owns the landmark building – has entered an administration process.
Staff told The Scotsman they were left surprised and shocked when the announcement was made.
On November 14, a Virgin Hotels spokesperson had told this newspaper: “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.”
A statement released by union Unite Hospitality on X on Tuesday reads: "Our members at Virgin Hotels Glasgow have just been informed that the hotel is to close with immediate effect six days before Christmas.
"The CEO flew in from the US, but couldn’t even answer whether workers will get paid for hours worked."
Virgin Group had on Monday made an approach to buy Virgin Hotels Glasgow from the owner, Lloyds Development Limited, as part of the administration process.
It is understood the company was told the lender was choosing to pursue a sales process in the hope of getting a better offer and that will have an impact on employees, suppliers and guests. Each Virgin hotel is owned independently and operated under a hotel management agreement.
The company that owns the hotel building is part of a limited liability partnership of four designated members.
They are Richard Diamond and Rishipal Singh alongside Lloyds Development Ltd with a registered address in Guernsey and Moreply Ltd, registered in London. All four partners were appointed on 18 May 2017. The partnership was placed into administration on 30 November with interim managers appointed to the company that owns the Glasgow hotel building.
A spokesperson for the joint interim managers said: “Blair Nimmo and Geoff Jacobs of Interpath Advisory were appointed on December 1, 2023 as Insolvency Practitioners to Lloyds Developments Limited, which owns the property located at 246 Clyde Street in Glasgow. They have not been involved with the trading of the hotel at this address. The interim managers are disappointed for everyone involved with the insolvency.”
The decision for Virgin Hotels Glasgow comes just a week after The Scotsman reported the owners of the building had entered an administration process.
irgin’s premier hotel in Glasgow is set to shut with immediate effect – just four months after first opening.
Staff were told in a morning meeting on Tuesday before being escorted from the building.
The 242-bedroom hotel on the Broomielaw was due to close for trading on Tuesday. The move comes less than a week since The Scotsman first reported that Lloyds Development Limited – the company that owns the landmark building – has entered an administration process.
Staff told The Scotsman they were left surprised and shocked when the announcement was made.
On November 14, a Virgin Hotels spokesperson had told this newspaper: “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.”
A statement released by union Unite Hospitality on X on Tuesday reads: "Our members at Virgin Hotels Glasgow have just been informed that the hotel is to close with immediate effect six days before Christmas.
"The CEO flew in from the US, but couldn’t even answer whether workers will get paid for hours worked."
Virgin Group had on Monday made an approach to buy Virgin Hotels Glasgow from the owner, Lloyds Development Limited, as part of the administration process.
It is understood the company was told the lender was choosing to pursue a sales process in the hope of getting a better offer and that will have an impact on employees, suppliers and guests. Each Virgin hotel is owned independently and operated under a hotel management agreement.
The company that owns the hotel building is part of a limited liability partnership of four designated members.
They are Richard Diamond and Rishipal Singh alongside Lloyds Development Ltd with a registered address in Guernsey and Moreply Ltd, registered in London. All four partners were appointed on 18 May 2017. The partnership was placed into administration on 30 November with interim managers appointed to the company that owns the Glasgow hotel building.
A spokesperson for the joint interim managers said: “Blair Nimmo and Geoff Jacobs of Interpath Advisory were appointed on December 1, 2023 as Insolvency Practitioners to Lloyds Developments Limited, which owns the property located at 246 Clyde Street in Glasgow. They have not been involved with the trading of the hotel at this address. The interim managers are disappointed for everyone involved with the insolvency.”