Multi-million-pound Covid lifeline for owner of Edinburgh's five-star Prestonfield House Hotel and The Witchery

The owner of iconic Edinburgh hospitality venues Prestonfield House Hotel and The Witchery has secured a multi-million-pound lifeline as the sector continues to be battered by coronavirus restrictions.

James Thomson, owner and director of Castlegate Investments, said the firm was committed to retaining its remaining employees. Picture: David Cheskin.

James Thomson was Scotland’s youngest licensee when he founded The Witchery restaurant at the top of the capital’s famous Royal Mile in 1978, aged 20, with just three staff. He has since grown his business to employ hundreds of people.

His company, Castlegate Investments, evolved with the purchase of Prestonfield House, where he had worked as a student, in 2003; and the Tower Restaurant, which was forced to close its doors permanently this year due to the pandemic.

The five-star Witchery and Prestonfield House venues re-opened their doors to the public last month following their temporary closure in October. The company, which has seen its wedding and events arm severely reduced by lockdown measures, said it was committed to retaining its remaining employees.

The firm has secured £2.5 million in coronavirus business interruption loan scheme (CBILS) funding through Royal Bank of Scotland to support the venues through the impact of coronavirus.

Thomson, owner and director of Castlegate Investments, said: “I began my business by taking out three loans, allowing me to establish The Witchery and purchase the freehold of the property.

“The company wouldn’t be where it is today without the support of banks, and I’m lucky to have built up a strong relationship with Royal Bank of Scotland over the years.

“The hospitality sector supports a whole ecosystem of jobs, from taxi drivers to farmers, to joiners, gardeners, lawyers, accountants, cheesemakers, and breweries. It’s vital that we do our utmost to keep things running, and this funding allows us to do that.

“I’m hopeful we can see a return to normality soon now that we have several vaccines in production.”

Stephen MacGregor, relationship director at Royal Bank of Scotland, added: “It’s been a difficult year for the hospitality sector as a whole, so it’s positive to see landmark venues like The Witchery able to re-open their doors.

“Working with James has been terrific over the years, and we’ll continue to support his business and his staff where possible.”

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