Aberdeen hotel goes into liquidation

Subscribe to our newsletter

To be updated with all the latest news, offers and special announcements.

AN Aberdeen hotel has gone into liquidation, with 34 jobs lost.

The 100-bedroom Hilton Garden Inn, on St Andrew Street, has been shut since Covid-19 forced its closure at the end of March and it will not reopen.

Professional services firm KPMG said directors of the business behind it, The St Andrew Street Hotel Company, were unable to secure funding to save it.

Blair Nimmo and Geoff Jacobs of KPMG have been appointed as joint liquidators.

The pair said the hotel had experienced challenging trading conditions for several years, following the downturn in the oil and gas industry.

With weakened economic activity in Aberdeen and an oversupply of hotel accommodation, the business experienced funding shortfalls at various times and required additional support from shareholders in order to continue trading.

Despite a restructuring involving several “key stakeholders” and steps to reduce trading and overhead costs, the business was still unviable. Bosses then tried but failed to sell the hotel after the onset of Covid-19.

At the time of KPMG’s appointment, the hotel employed 34 people who were on furlough.

KPMG said: “Regrettably, all have been made redundant following the liquidation appointment as the business will not be able to reopen and trade.”

Mr Nimmo, KPMG’s UK head of restructuring, added: “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.

“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.”

Share

Share on facebook
Share on twitter
Share on linkedin

Related News