Epidemic puts jobs on the line
Redundancy worries for Crutherland House Hotel staff
The potential backlash of the coronavirus epidemic on East Kilbride’s economy was realised this week as it was announced two employers are facing administration.
Both Macdonald Hotels and Chiquito plunged the future of dozens of jobs in the area into doubt with announcements on the stock market.
That could see job losses at Crutherland House Hotel and will see the withdrawal of the Tex-Mex restaurant from EK Hub.
Macdonald Hotels has announced it could axe up to 1800 jobs due to the coronavirus pandemic, sparking fears over the safety of jobs at East Kilbride’s Crutherland House.
Bosses at the hotel chain last week confirmed it is in consultation with staff about plans to cut jobs across the group.
The firm, who own 31 properties across Britain, insisted it had no option but to cut costs as a result of the coronavirus lockdown.
Deputy chairman Gordon Fraser said: “We had really hoped to avoid this very unwelcome step, but with no realistic prospects of a return to anything like normal trading for the foreseeable future, we were simply left with no choice.
“Potentially, we are looking at around 1800 roles at risk, in all areas and at all levels of the business.
“The Government’s furlough scheme has helped to a degree but our essential operating costs, insurance and some wages are still having to be paid, meaning our monthly cash outgoings are still running at £2 million while we are forced to remain closed.
“Even after cutting all non-essential spending and with senior management and our remaining staff accepting reduced salaries, the current situation is simply unsustainable.”
The announcement comes as another blow for Scotland’s hospitality sector as it was given a provisional date for venues to reopen of July 15.
Mr Fraser added: “Whilst its enormously regrettable, we simply must take these steps to ensure that we have a meaningful business when this situation ends, enabling us to bring back as many of our employees as possible.”
SNP MP Dr Lisa Cameron said she would do “everything possible” to support staff affected at the Crutherland Hotel.
She added: “I have already signed a cross party letter to the Chancellor requesting a long term plan for the tourism, hotel and hospitality industry – the industry has been severely affected by the coronavirus crisis, missing this year’s summer season with the majority of staff furloughed and their jobs at risk”.
Labour’s Monica Lennon said: “This is extremely worrying news for workers in East Kilbride.
“I am really concerned that some experts are predicting Scotland’s hospitality sector could lose 100,000 jobs.”
Tory MSP Graham Simpson said: “The hospitality industry is in dire straights because of the lockdown.
“This is terrible news and a real blow for the workers and indeed the town.
“Even if hotels can start to reopen next month it will take months if not years for them to recover. I only hope the Crutherland can survive in some form.”