The Glenburn Hotel in Rothesay, Isle of Bute has filed for administration, caused by significant operating costs, coupled with the fall in revenue due to the pandemic, leading to unsustainable cash flow problems.
All remaining staff will be made redundant with immediate effect and joint administrators Stuart Robb and Chad Griffin from FRP Advisory will now commence liaising with employees, the Redundancy Payments Office and other agencies to minimise the impact on staff and to ensure their claims for redundancy are processed as quickly as possible.
Originally built in 1843 on a hilltop location overlooking Rothesay, Scotland’s first ‘hydropathic’ hotel opened in 1892 was extensively refurbished in 2016 and features around 121 guest rooms, a ballroom, restaurants, bars, a terrace, conference facilities and terraced gardens. There are also three cottages located within the grounds of the hotel.
Joint Administrator Stuart Robb, partner with FRP Advisory said. “The Glenburn Hotel is a landmark hotel with a long history stretching back to its opening as a grand seaside hotel in 1892. Unfortunately, having explored all its options, the Hotel was unable to survive the significant fall in revenue caused by the COVID 19 pandemic whilst still having to meet significant maintenance and running costs.
“We will now focus our efforts on assisting employees, many of whom have worked at the hotel for many years, to submit their claims for redundancy and other sums due to them whilst preparing to market and sell the hotel.”
The hotel had traded briefly since the start of the first lockdown in early 2020, but has been closed since November 2020 with staff initially being placed on furlough.