All 34 employees at the Hilton Garden Inn in Aberdeen city centre now face unemployment as the hotel enters into liquidation as a result of “challenging trading” during Covid-19.
The 100 bed hotel closed in March 2020 when Covid-19 lockdown measures were introduced in the UK,a move which was believed to have had a “significant impact” on the venue’s cash position.
KPMG, the hotel’s advisors, stated: “the directors were unable to secure new funding and despite marketing the leasehold interest in the hotel, there was no sale secured therefore the directors took the difficult decision to place the company in liquidation.
“Despite a restructuring involving several of the company’s key stakeholders and taking steps to reduce trading and overhead costs, the hotel was still unviable.”
It is also believed a weakened economic activity in Aberdeen and an oversupply of hotel accommodation added to the hotel’s financial struggles.
Blair Nimmo, joint liquidator and KPMG’s UK head of restructuring, said: “Unfortunately, following a prolonged period of challenging trading, lockdown was too big a challenge for the hotel in a local market already adversely impacted by oversupply.
“The current difficulties within the hospitality sector are well documented and we have been working with several businesses recently with similar challenges.”
He added: “Regrettably, some insolvencies in this sector are inevitable, and we are working with all affected employees and the relevant government agencies to ensure a full range of support is available for all impacted employees.”
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