Administrators appointed to Glasgow’s Lorne hotel

Administrators have been appointed to Glasgow’s 102-bedroom Lorne hotel with all staff made redundant.

Blair Nimmo and Alistair McAlinden of Interpath Advisory have been appointed as joint administrators of Bellhill, which operates the hotel, as well as its Bukharah Indian restaurant and Bilberry cocktail bar.

The company encountered financial difficulties due to Covid-19 restrictions preventing the hotel, bar and restaurant from trading from March 2020 onwards.

Director Sohan Singh took steps to reduce costs and manage cash flow during the pandemic, however, following legal action against the company earlier this month, he concluded that there was no other option than to place the company into administration.

Administrators said that, due to the company’s financial position, there was no option other than to cease to trade with immediate effect, meaning all 30 employees have been made redundant. The administrators will be seeking a sale of the hotel.

Nimmo, chief executive of Interpath, said: “The impact of the pandemic and resulting lockdown on companies across the Scottish leisure and hospitality sector has been profound. Our priority is to work with all affected employees and the relevant government agencies to ensure a full range of support is available.”

McAlinden, head of the hospitality and leisure sector team for Interpath in Scotland, added: “We will be looking for a purchaser for the Lorne hotel and its assets, ideally situated in the west end of Glasgow and close to the city centre and its attractions, including the Hydro and the Scottish Exhibition Campus. This is an opportunity for a purchaser to acquire an asset with significant potential.”