The closure, announced unexpectedly in a staff meeting followed by immediate escort from the premises, occurs amidst financial turmoil for the property’s owner, Lloyds Development Limited.

Less than a week prior, it was reported that Lloyds Development Limited, owning the iconic Broomielaw building, had entered an administration process. This development follows a 14 November statement from a Virgin Hotels spokesperson, asserting business continuity despite the administration process involving Lloyds Development Limited.

Unite Hospitality union revealed the sudden closure of the hotel, a mere six days before Christmas, with the CEO unable to confirm if employees would receive payment for their work. Virgin Group’s recent bid to acquire the Glasgow hotel from Lloyds Development Limited during the administration was declined, with the lender opting for a sales process in hopes of a better offer, potentially impacting employees, suppliers, and guests.

The hotel, operated independently under a hotel management agreement, is part of a limited liability partnership involving Richard Diamond, Rishipal Singh, Lloyds Development Ltd (Guernsey), and Moreply Ltd (London). The partnership faced administration on 30 November, with Interpath Advisory’s Blair Nimmo and Geoff Jacobs appointed as interim managers for Lloyds Developments Limited, the entity owning the Glasgow hotel’s property, The Scotsman reports.

Virgin Hotels Glasgow, which partially opened in August 2022, faced delays and challenges, including incomplete upper floors and suites. The Edinburgh flagship hotel of the company remains unaffected by these developments.