Virgin Hotels Glasgow closed as staff escorted from building six days before Christmas

Virgin Hotels Glasgow has shut with immediate effect today, December 19, just four months after it opened on the Broomielaw as staff were informed in a morning meeting before being escorted from the building. Upset staff congregated after the meeting in the nearby Hootenanny bar as they faced up to the news they had lost their jobs at the hotel that opened in August this year.

Staff were surprised and shocked when the announcement was made. On 14 November a Virgin Hotels spokesperson had told GlasgowWorld: “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.”  

READ MORE: Inside the decision to close Virgin Hotels Glasgow and shock news for staff

A statement released by Unite Hospitality on Twitter today 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."

Yesterday, Virgin Group made an approach to buy Virgin Hotels Glasgow from the owner, Lloyds Development Limited, as part of an administration process. They were told the lender is choosing to pursue a sales process in the hope of getting a better offer. Virgin intimated that decision would have an impact on employees, suppliers and guests. Less than 24 hours later, the hotel was closed and staff were informed.

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 1 December 2023 as Insolvency Practitioners to Lloyds Developments Limited (“the Company”) 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.”

You can read more about the administration process that has led to the sudden closure of the hotel here.

Lead Organiser of Unite Hospitality, Bryan Simpson, gave us a statement on the closure of Virgin Hotels, he 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."

Virgin Hotels Glasgow was initially scheduled to launch in summer 2022 before being delayed until December last year, then eventually opening the lower floors and welcoming guests to some of the projected 242 bedrooms in August. The upper floors and suites of the hotel were not complete when the hotel opened.

Virgin Group said last week that the the property had performed as expected since opening.

You can read workers reaction and more details on the closure of the hotel here.