Staff at Virgin Hotels Glasgow to be paid by liquidators after sudden closure

Staff at Virgin Hotel Glasgow found out today that they would be getting paid for their hours worked after an uncertain 28 hours. Yesterday around 150 staff were told by upper management that the hotel as closed with immediate effect and the operating company was being liquidated.

The shocked staff were reeling from the meeting (12pm December 19) where they were told it was in the hands of the liquidators whether or not they would be paid - that was before a meeting today with liquidators (4pm December 20) where they were informed they would receive their full wage for December, 100% of tips and service charge over the last two months, all overtime paid, holiday pay to be paid as priority, and at least one week notice pay.

We spoke with the staff yesterday afternoon when they gathered after they found they had all lost their job - the bewildered ex-hotel workers had only been told of the spontaneous meeting on Monday night (December 18) - a less than 24 hour gap.

Just last week GlasgowWorld reported that the Virgin Hotel building had went into administration, but both staff and media were informed on November 14:"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.”  

Following the online meeting between the former staff and liquidators today, Bryan Simpson, Lead Organiser of Unite the Union, shared: "After grilling the Director of V Hotels Glasgow Limited and senior representatives from Virgin hotels for 1.5 hours, Virgin hotel workers have won commitment on the following:

• Full wage for the whole of December
• 100% of tips and service charge for November and December
• All overtime worked to be paid
• Holiday pay to be paid as priority
• One week notice pay to be paid with contractual notice pay (up to 3 months) to be requested through insolvency service.

"As we were in the meeting, our members started getting the money in their bank account."

You can read more about the events that happened yesterday in our initial reporting of the incident, click here.

Statement on V Hotel Glasgow Limited by liquidators FRP Advisory

Sarah Cook and Simon Carvill-Biggs of FRP Advisory have been instructed by the Directors of V Hotel Glasgow Ltd to support the entry of the company into liquidation.   V Hotel Glasgow Ltd is the operating company for the Virgin Hotel on Clyde Street, Glasgow, and the hotel has ceased trading following the property owners, Lloyds Developments Ltd, entering into in an insolvency process earlier in December. The lenders are now looking to pursue a sale of the property, which has resulted in the hotel being closed with immediate effect and, regrettably, 130 employees have been made redundant.   Sarah Cook of FRP said: “We know that this will be a very difficult time for employees, particularly so close to Christmas. Every effort has been made by the Directors and by Virgin Hotels to find a way forward for the hotel in recent weeks, but this has unfortunately not been possible.    “The immediate closure of the hotel has, of course, resulted in the business no longer being financially viable and will therefore enter a liquidation process in the coming weeks. 

 “We are grateful to Virgin Hotels for their support in making up the shortfall in the business finances to enable us to make payroll and ensure that all employees will receive full wages up to December 31. We will also continue to support employees in making any further claims to the Redundancy Payments Service.”