Seven Scottish hotels ceased operations after a large British travel company took office.
About 2,500 jobs were lost and 64,000 reservations were canceled with the collapse of Specialist Leisure Group.
The hotel and travel company included the well-known brands of coach vacations Shearings, Caledonian Travel and Wallace Arnold.
Travel agency Abta said the company had struggled to reimburse trips canceled due to Covid-19.
- The specialized leisure group collapses in administration
He added that the vast majority of canceled reservations were bus trips and that customers with these reservations will receive a full refund.
The hotels in Scotland which, according to a statement by the co-administrators, have ceased their activities are:
- Bay Highland Hotel in Strathpeffer
- Bay Great Western Hotel in Oban
- Bay Tarbet Hotel in Loch Lomond
- Bay Caledonian Hotel in Fort William
- Bay Waverley Castle Hotel in Melrose
- Pitlochry Hydro Hotel in Perthshire
- Portpatrick Hotel in Dumfries and Galloway
The Wigan-based Specialist Leisure Group also operated Wallace Arnold Travel and accommodation brands such as Bay Hotels, Coast and Country Hotels and Country Living Hotels.
The firm said on its website that all tours, cruises, vacations and hotel stays have been canceled and will not be rescheduled.
In a statement obtained by Travel Weekly, the company’s managing director, Richard Calvert, said, “The effects of Covid-19 on our 117-year-old company and the travel industry as a whole have been devastating.
“In the most difficult circumstances, we fought tooth and nail to save the group and the jobs of our 2,400 loyal employees serving more than 1.1 million customers each year.
“It is heartbreaking that the necessary funding or investment could not be obtained to get us out of this unprecedented crisis. “
“Very sad day”
John de Vial, Director of Member and Financial Services for Abta, said: “Today is a very sad day for these customers and the thousands of employees who will have lost their jobs.
“The fact that two of these well-known brands with loyal customers had to hire administrators is a vivid indication of the pressure the vacation industry is facing in the wake of the coronavirus pandemic.
“Abta has repeatedly stressed to the government the urgency of the situation and the need to define a coordinated strategy with clearer communication if it is to help avoid significant job losses and help businesses weather the storm. “