A hotel in Shetland has closed its doors for good following a difficult trading period and the impact of Covid-19.
Administrators from Leonard Curtis Business Rescue & Recovery Glasgow were appointed for The Sea Door Limited, operators of The Scalloway Hotel in Shetland, on March 25, which is now closed as a result.
The independent hotel owned by Peter and Caroline McKenzie comprises 23 bedrooms, a bar and 2 AA Rosette restaurant, with all 17 employees now redundant with immediate effect.
Joint administrator Stuart Robb said: “Despite having strong bookings in the tourist season, in recent years the business had experienced a significant reduction in turnover during winter periods, mainly due to the downturn in the oil and gas sector and increasing overheads. As a result, the Company experienced cashflow difficulties.
“Unfortunately, having assessed the Company’s trading and financial performance – and in light of the current COVID-19 pandemic – it is not possible to re-open the hotel and, as such, all 17 employees have been made redundant with immediate effect.
“We appreciate that this is disappointing news for the staff at what is already an unsettling time. We are working with Partnership Action for Continuing Employment (PACE) to ensure that those employees impacted by redundancy receive the best possible support.
“There remains an opportunity to acquire the hotel, and we would encourage any interested parties to contact Emma Cameron by email at email@example.com with a note of interest.”