New Virgin hotel in Glasgow closes days before Christmas as jobs lost

The new hotel, based on Glasgow's Clyde Street, has closed with immediate effect.

A new hotel in Glasgow has closed just days before Christmas as it is claimed hundreds of staff have lost their jobs.

Virgin Hotels, based on the city's Clyde Street, ceased trading with immediate effect from today. Unite Hospitality, which represents workers at the venue, claims employees have been left in limbo over whether they got paid or not.

The union blasted the move as "morally reprehensible".

Bryan Simpson, lead organiser, 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."

The hotel opened in August, however, the firm announced earlier this month that the owners of the building - Lloyd’s Development Limited - had entered administration. It led Virgin Group offering to buy the property in a bid to keep the hotel open.

This offer was, however, rejected.

A spokesman for Virgin Group said at the time: "Sadly, Lloyds Development Limited – the owner of Virgin Hotels Glasgow, which Virgin Hotels has a management contract with – has financial problems and is now in receivership. The Virgin Group has tried to help find solutions including offering to purchase the hotel at what it believed to be a fair price to keep it open and to ensure the team remains employed.

"If this proposal wasn’t accepted, Virgin also offered to keep the hotel open, splitting the costs of running the hotel for the next six months, whilst the owners sought a better price. Unfortunately, the lender has not accepted Virgin’s offer and wishes to pursue a sales process.

“Virgin Hotels is very disappointed by this decision after the hard work everyone has put into the project and in particular because of the impact it will have on the team that works there.”

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The Record has approached Virgin Hotels for comment on the closure of the hotel.

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