The two were appointed administrators on Wednesday last week.

The Scalloway Hotel is an independent establishment with 23 rooms, a bar and 2AA Rosette restaurant.

After reviewing the company’s options, following a difficult couple of years trading and in light of the COVID-19 pandemic crisis, the directors have recently taken the difficult decision to close the hotel and appoint administrators.

The company, which employs 17 staff, has currently ceased trading.

Stuart Robb said: “Despite the Hotel having a strong order book in tourist season, the business had experienced a significant reduction in turnover over the winter periods in recent years, principally due to the downturn in the oil and gas sector and increasing overheads, which led to the Company experiencing cash flow difficulties.

“Unfortunately, having assessed the company’s trading and financial performance and in light of the COVID-19 pandemic, it is not possible to re-open the Hotel and, as such, 17 employees have been made redundant with immediate effect.

“We appreciate that this is disappointing news for the company’s staff in what is already an unsettling time for them. We are working with PACE to ensure the employees impacted by redundancy are provided with the best support possible.”