27th May 2020
Established 1872. Online since 1996.

Scalloway Hotel enters administration

The Scalloway Hotel has entered administration with the loss of 17 jobs.

The popular attraction run by Peter and Caroline McKenzie had closed its doors temporarily as a result of Covid-19 crisis.

But a drop in trade from the oil and gas sector together with the ongoing pandemic has resulted in its permanent closure.

Stuart Robb and Michelle Elliot – of Leonard Curtis Business Rescue and Recovery in Glasgow – were appointed joint administrators of The Sea Door Limited, operators of The Scalloway Hotel.

After reviewing the company’s options the directors made the decision to close the hotel and appoint administrators.

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 emma.cameron@leonardcurtis.co.uk with a note of interest.”

Located on Main Street, in Scalloway, the independent hotel has 23 rooms, a bar and 2AA rosette restaurant.

Your Comment

Please note, it is the policy of The Shetland Times to publish comments and letters from named individuals only. Both forename and surname are required.

Comments are moderated. Contributors must observe normal standards of decency and tolerance for the opinions of others.

The views expressed are those of contributors and not of The Shetland Times.

The Shetland Times reserves the right to decline or remove any contribution without notice or stating reason.

Comments are limited to 200 words but please email longer articles or letters to editorial@shetlandtimes.co.uk for consideration and include a daytime telephone number and your address. If emailing information in confidence please put "Not for publication" in both the subject line and at the top of the main message.

This site uses Akismet to reduce spam. Learn how your comment data is processed.