150 jobs at risk as luxury hotel faces shutdown
Taxman’s winding-up order over debts
A LANDMARK hotel has been plunged into liquidation at the hands of the taxman, leaving 150 staff facing the risk of redundancy.
Her Majesty’s Revenue and Customs (HMRC) filed for a winding-up order against The Scotsman Hotel in Edinburgh in May to recover debts believed to run into six figures.
Now the city’s sheriff court has appointed a liquidator to shut down the five-star venue, which stands on the capital’s North bridge. The decision could prove to be the final nail in the coffin for the hotel which has been beset by a long-running saga involving late wages and missing tax payments.
Last night, The Scotsman’s owners, JJW Hotels, insisted that last-minute negotiations had succeeded in pulling the business back from the brink.
The hotel is owned by the Saudi hotel tycoon Sheikh Mohamed bin Issa al Jaber and his daughter Mashael.
However, it has struggled to make profits since opening in 2001. It employs around 150 staff but they have been paid late more than once in the last year after management admitted facing a ‘challenging trading period’.
bosses blamed an administrative oversight when HMRC first went to court to demand its dues last December and then a computer glitch when a second winding-up order was sought in February.
Now it has emerged that Edinburgh Sheriff Court appointed liquidator French Duncan to take over the running of the hotel on June 9 and
‘Prevent things deteriorating’
creditors have been invited to attend a meeting in the capital on July 13.
but a JJW spokesman said: ‘HMRC made an estimate of the amount of tax that was due. The company also made an estimate and paid it, however, there was a differential between the two figures.
‘JJW Hotels met with the liquidator on Monday and agreement was reached on a new figure.
‘There will be no redundancies, the hotel is trading well and looking forward to the extra business that comes with the Edinburgh Festival.’
An HMRC spokesman said: ‘We do not comment on the tax affairs of individuals. our aim is to efficiently collect the debts due and to prevent things deteriorating further.’