Historic Mercure Aberdeen hotel enters liquidation with 68 job losses

The Mecure Aberdeen Ardoe House Hotel and Spa in Scotland has entered creditors' voluntary liquidation, with the loss of 68 jobs.

The 19th-century mansion is set in 18 acres of parkland and was a popular venue for meetings, conferences and weddings.

But a downturn in the local economy due to the collapse of oil prices, as well as the onset of coronavirus earlier this year, meant it was unable to recover normal levels of trading.

An announcement confirming the closure said the pandemic had been the ‘final straw’ for the business.

Ken Pattullo, a business adviser from Begbies Traynor, who is working with the hotel’s directors, said: “Unfortunately, the hospitality sector has been among the hardest hit by the pandemic, with the forced closure in spring having devastating consequences for the Ardoe House hotel.

“With Aberdeen currently in Level 2 and coronavirus restrictions continuing, the directors felt the hotel was no longer viable and had no choice but to put the business into liquidation.

“In the face of ongoing uncertainty due to the health measures implemented to help combat the global pandemic, there was no way of saving the business and the jobs it supported; it is sad to see the closure of such a popular hotel.”

The coronavirus shutdowns across Scotland have hit the hospitality sector hard, with some hotels such as Gleneagles choosing to close until 2021 rather than face the winter period under tougher restrictions.

The Scottish Tourism Alliance has warned that the costs of remaining open and “providing a total experience which the customer expects” are now too high, and has called on the Scottish government to offer more financial support to help hotels to remain solvent.

Eleven council areas in Scotland are to move into the toughest coronavirus restrictions, which includes the closure of hospitality, from Friday.