Macdonald Hotels, which operates 31 properties across the UK, has started a consultation process with staff, with 1,800 jobs at risk as the impact of the coronavirus takes its toll on trading.
Yesterday the group issued each of its 2,299 employees with consultation notices, with roles at risk at ‘all levels of the business’.
Despite the government’s furlough scheme helping ‘to a degree’, the Group’s deputy chairman Gordon Fraser said that monthly cash outgoing are still running at £2m while all properties are forced to remain closed.
He added that even with all non-essential spending cut and senior management and staff taking pay cuts, the current situation was ‘simply unsustainable’.
Group deputy chairman Gordon Fraser said: “We had really hoped to avoid this very unwelcome step, but with no realistic prospects of a return to anything like normal trading for the foreseeable future, we were simply left with no choice. Potentially, we are looking at around 1,800 roles at risk, in all areas and at all levels of the business.
“The Government’s furlough scheme has helped to a degree but our essential operating costs, insurance and some wages are still having to be paid, meaning our monthly cash outgoings are still running at £2 million while we are forced to remain closed. Even after cutting all non-essential spending and with senior management and our remaining staff accepting reduced salaries, the current situation is simply unsustainable.
“There is no realistic prospect of us returning to anything approaching normality for the foreseeable future and, whilst its enormously regrettable, we simply must take these steps to ensure that we have a meaningful business when this situation ends, enabling us to bring back as many of our employees as possible.
“We are seeing more and more of our counterparts being forced into the same, very difficult decisions to either close completely or to cut back on hardworking and valued members of staff. It’s a tragedy.
“Given the enormous importance of the tourism and hospitality sector for local economies the length and breadth of the UK, it is incumbent upon both the Westminster and Scottish Governments to do everything they can to support our industry. If they fail to do so, many long-standing and well-loved businesses will simply not survive, scarring some of our most fragile communities for years to come.”