Crieff Hydro Group scaling back its workforce by a quarter

Crieff Hydro group, which runs seven mainly rural sites, says around 240 jobs are on the line.

But that number could go up or down depending on when lockdown restrictions on the hospitality industry are eased.

It's started a consultation process with staff.

Stephen Leckie, CEO and Chairman of Crieff Hydro Family of Hotels, said: ‘When we closed our doors at the end of March, it was one of the darkest days in our 150 year history and this is another. The impact coronavirus has had on our industry and business has been immediate and drastic.

“Throughout this process we’ve done everything we can to look after our people. But despite all the measures we’ve taken so far to reduce costs, we anticipate that when we do open, bookings will be down by 30-50% for the best part of a year. This will amount to a revenue loss of at least £17m (50%) in the current financial year. For every month we’ve been closed with zero income, we’ve had to pay £500k just to keep our buildings safe and insured. This would have a profound effect on any business.

“To try to navigate our way through this crisis, we’ve made use of the Government’s Job Retention Scheme as well as securing an additional £5m in loans from our bank to give us the best chance of survival when we are eventually allowed to reopen. This comes with a heavy financial burden but is the only way forward to rebuild the business and protect the remaining jobs."

Chief Executive of the Scottish Tourism Alliance, Marc Crothall, said: "Crieff as a little village benefits immensely from the number of guests that go and stay in the Hydro."

"Those local stores and craft shops will be all the ones set to miss out additional footfall."

Mr Crothall thinks there could be up to 100,000 people in hospitality are at risk of losing their jobs.

Liz Smith, Conservative MSP for Mid Scotland and Fife region, said: “This is devastating news for Crieff as Crieff Hydro Hotel is the area’s largest employer, bringing thousands of people to the area throughout the year.

“It is an especially worrying time for the staff employed by Crieff Hydro Hotels.”

She continued: “Crieff Hydro is a 150-year-old family business that attracts visitors from far and wide. I am deeply concerned to hear that it is losing £500,000 per month due to the lockdown and intend raising this matter with the First Minister.

“This just emphasises the perilous situation faced by many businesses in Scotland just now as a result of the crisis.”

And Mr Fraser, also a Conservative MSP for the Mid Scotland and Fife region, added: “These are desperate times for Crieff Hydro Hotels and this announcement highlights the difficult position the hospitality sector is in just now.

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