Stuart Robb and Michelle Elliot of Leonard Curtis Business Rescue and Recovery have been appointed as joint administrators of The Sea Door Limited, operators of The Scalloway Hotel.
The property is an independent hotel with 23 rooms, a bar and 2 AA Rosette restaurant.
Leonard Curtis said after reviewing the company’s options, following a “difficult couple of years trading and in light of the COVID-19 pandemic crisis”, the directors have recently taken the “difficult” decision to close the hotel and appoint administrators.
The company, which employs 17 staff, has currently ceased trading.
Robb said: “Despite the hotel having a strong order book in tourist season, the business had experienced a significant reduction in turnover over the winter periods in recent years, principally due to the downturn in the oil and gas sector and increasing overheads, which led to the Company experiencing cash flow difficulties.
“Unfortunately, having assessed the company’s trading and financial performance and in light of the COVID-19 pandemic, it is not possible to re-open the Hotel and, as such, 17 employees have been made redundant with immediate effect.”
He added: “We appreciate that this is disappointing news for the company’s staff in what is already an unsettling time for them. We are working with PACE to ensure the employees impacted by redundancy are provided with the best support possible.”