Job losses as Airth Castle Hotel closes and customers demand refunds for weddings and functions

A popular, luxury wedding venue has gone into administration resulting in multiple job losses.

Airth Castle Hotel announced it would voluntarily cease trading on Tuesday.

A spokesperson for the operators, Airth Castle Hotel Limited, confirmed that 26 full-time staff members as well as multiple part-time staff will now be made redundant.

Owners, Airth Castle Limited, said the hotel would not be sold following the operator’s insolvency.

The Castle, which dates back to the 14th century was once owned by the family of Robert the Bruce.

It has been used since 2004 as popular venue for weddings, private parties and exclusive events as well as for its spa and grill restaurant.

Many weddings and functions had been booked for the coming months, some say they have been contacted by the venue while others are still waiting for confirmation that their event has been cancelled.

Advice Direct Scotland, a national consumer advice service, has issued guidance for both customers facing cancellation and staff being made redundant.

Colin Mathieson, spokesperson for Advice Direct Scotland, said: “This announcement will have left staff and customers with questions about what this means for them.

“Consumers with holidays, weddings, and other events booked will be wondering what they can do to get their money back.”

Issuing support to those seeking refunds, Mr Mathieson said: “If the booking was made as part of a package, or through a third-party travel agent or company, you should contact them in the first instance to see what measures are in place.

“Those who paid with a debit card, can make a chargeback claim to their card provider.

“If you made the purchase on a credit card for over the value of £100, you could make a claim to your card provider using Section 75 of the Consumer Credit Act.

“Those unable to claim back through Section 75 or chargeback, could look out for more information from the administrator handling the liquidation.”

He added: “For those concerned about losing their jobs we have put together a guide to redundancy, specifically what employees can do if their employer enters administration.

“It’s important to remember that help is available, and anyone who is worried can contact one of our specialist advisers for free, impartial and practical advice.”

A spokesperson for Airth Castle Hotel Limited said: “The Coronavirus pandemic had a major financial impact on the operating company, as the hotel was forced to close for an extended period.

“Then, as the energy crisis unfolded and supplier costs increased, the company’s level of debt reached unmanageable levels and we have taken the reluctant decision to place the company into voluntary liquidation.

“Regretfully, around 26 full-time staff, together with a number of part-time staff, will be made redundant.”