Scottish bar group accused of mistreating staff enters liquidation

22 June 2022 by
Scottish bar group accused of mistreating staff enters liquidation

A Scottish hospitality group that faced accusations of mistreating staff has collapsed with more than 60 jobs put at risk.

MacMerry300, which ran 11 bars in Dundee and Glasgow, ceased trading on Tuesday (21 June) and entered liquidation.

Its sites included Abandon Ship in Dundee and Fly South and Mr Lincoln in Glasgow.

In January, 71 current and former staff accused the company of multiple failings including allegations of a lax attitude to Covid-19 safety and a failure to pay staff on time.

MacMerry300 initially described the claims as "bewildering" but later said it would launch a full investigation.

Joint liquidators from Interpath Advisory said they had "no option" but to make all of the group's 63 staff redundant immediately as there was "no available funding" and company assets had already been sold.

It is understood that a transfer of certain assets took place in May 2022.

"Due to the detrimental impact of Covid-19 restrictions upon trading performance, cost pressures and recent reports alleging mistreatment of staff, the company incurred losses, which resulted in substantial liabilities being accrued," the liquidators said.

This put the company under "significant financial pressure" with a director resolving that the company was insolvent and should be wound up voluntarily.

Blair Nimmo, chief executive of Interpath Advisory and joint liquidator, said: "This is unfortunately a further example of a business within the hospitality and leisure sector being unable to withstand ongoing testing trading conditions, as the re-emergence from Covid-related restrictions continue against a backdrop of accumulated debt."

The liquidators said their immediate priority would be to assist employees with redundancy claims and carry out "appropriate investigations" into the recent transfer of company assets.

It is understood the group's Abandon Ship bars in Glasgow and London's Covent Garden and the Bull in Glasgow are part of separate entities and are not under control of liquidators.

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