STAFF at Dunoon’s landmark McColl’s Hotel were summoned to a meeting at noon on Monday (August 16) to be told they no longer had jobs to go to. 33 people in Dunoon have lost their jobs, along with 22 in the company’s Torquay hotel and five from a bar in Wednesbury.

The company behind the art deco hotel went into administration recently and the administrators found, after examining the books, that it was simply not worth carrying on with the company, despite the bumper weekend’s takings associated with Cowal Games being less than two weeks away.

Administrators have confirmed that no future bookings will be honoured, including that of the Islay Pipe Band who had hoped to stay at McColl's to compete in the Cowal Games.

A spokeswoman for joint administrators BDO LLP said today: “After a review of the operations it was apparent that continuing to trade would have incurred substantial losses.
“Regrettably, both hotels and the bar have ceased trading with immediate effect and 58 staff employed across the three sites have been made redundant. Two staff have been retained to assist in an orderly wind down.”
James Stephen, BDO business restructuring partner, said: “Unfortunately the economic climate and difficult trading conditions have significantly affected the industry.”

We asked the administrators if guests whose future bookings had been cancelled would be refunded. The spokeswoman said: “Customers who have had holidays cancelled will be receiving a letter within the next 14 days confirming the Administration appointment and advising that both hotels ceased to trade with immediate effect on August 16. 
“The letter will outline the action required by the guests in relation to deposits or balances already paid.”

Asked if staff will received redundancy payments the spokeswoman said: “Staff who are entitled to redundancy will be able to claim statutory redundancy pay from the Redundancy Payments Office.”
Statutory redundancy pay works out at one week’s pay for every full year worked for staff aged between 22 and 41. Those under 22 will receive 0.5 per cent of that amount, those over 41 will receive 1.5 per cent. Staff need to have worked for two years before being eligible - something of a rarity in the hotel trade.

It seems, however, that administrators formed their plans to close the business before they informed staff.
Asked if guests staying at the hotel on Monday were simply sent home the spokeswoman said: “Nobody stayed in the hotels on Monday, any tours scheduled to arrive on Monday had been cancelled before then.”

One redundant staff member contacted the Standard to say where they laid the blame.
“It’s entirely down to bad management over the years and perhaps could have been avoided if the owners had a more hands-on approach.”
The former employee went on to say: “It’s just very sad that a lot of people have lost their jobs and that so many guests have been let down at short notice.”

Mr Morrell of Staffordshire had booked a holiday for himself and his wife at McColl’s next month. He contacted the Standard to say: “We have tried to call the hotel but it just keeps ringing out.
“If we get our money back it’s a bonus, but for the people who have lost their jobs it’s a tragedy.

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