The Glenburn Hotel enters into administration

The Glenburn Hotel based in Rothesay, Scotland, has announced that it has entered into administration.

The administration was caused predominantly by the Covid-19 pandemic which led to “unsustainable” cash flow problems, “significant” operating costs and falls in revenue.

The hotel had traded briefly since the start of the first lockdown in early 2020, but has remained closed since November 2020 with staff initially being placed on furlough.

Stuart Robb and Chad Griffin, partners at FRP Advisory, have been subsequently appointed joint administrators for the hotel and will begin the process of marketing it for sale.

Furthermore, the hotel said that all remaining staff will be made redundant with immediate effect.

The firm will now commence liaising with employees, the Redundancy Payments Office (RPO) and other agencies to minimise the impact on the staff and to ensure their claims for redundancy and other entitlements due to them are processed as quickly as possible.

Joint administrator, Robb said: “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.”

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