Bellhill Limited: Glasgow’s Lorne Hotel goes into administration as staff made redundant

The Lorne Hotel in Glasgow has gone into administration and ceased trading with immediate effect.

The company’s owners cited a dramatic fall in turnover caused by Covid-19 restrictions that prevented the hotel, bar and restaurant from trading after March last year.

Bellhill Limited which owns the three star West End hotel, also blamed its collapse on the loss of a legal case against the company earlier this month.

The decision means the hotel’s 30 staff have been made redundant.

‘The impact has been profound’

Blair Nimmo and Alistair McAlinden of Interpath Advisory, who were appointed as joint administrators of Bellhill Limited on May 19, are now seeing a buyer for the company and its assets - including the Lorne Hotel.

Mr Nimmo 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.”

The 102-bed Lorne Hotel incorporates Bukharah, an award-winning Indian restaurant, and Bilberry Cocktail bar, together with a function suite and conference facilities.

Mr McAlinden added: “We will be 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.”

‘Wasted stock and increased debt’

The collapse of Bellhill Limited comes after the Scottish Government announced that Glasgow would remain in Level 3 of the five-tier system of coronavirus restrictions as the rest of the mainland dropped to Level 2.

The move prevented widespread relaxations of rules for the city’s hospitality and entertainment sector, including venues being able to serve alcohol indoors.

Andrew McRae, the Federation of Small Businesses Scotland policy chairman, said the news was “crushing” for businesses and their customers.

He said: “The damage of this change, especially in Glasgow, is exacerbated by the lateness of this announcement.

“It means wasted stock, disappointed customers and increased debt.

“Scotland’s largest city has faced tough restrictions for months and months, doing untold harm to local firms.”

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