Virgin Hotel in Glasgow closes four months after opening
Staff were told earlier on the place would be shutting with immediate effect.
Last updated 19th Dec 2023
The Virgin Hotel in Glasgow has reportedly closed just months after it opened to the public.
The multi-million pound development on the banks of the River Clyde only opened in August.
Bryan Simpson from Unite Hospitality said: "Our members were told just earlier on today by the CEO that the hotel was closing.
"One hundred and thirty workers had their contracts terminated without the notice required six days before Christmas."
A spokesperson from Virgin Hotels, says: “Lloyds Developments Limited – the owner of Virgin Hotels Glasgow, which Virgin Hotels has a management contract with – has financial problems and on 1st 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.
“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.”
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, 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.
"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.”
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