Virgin Money to close 12 branches across Scotland with four near Glasgow

Four branches set to shut are around the Glasgow area including Airdrie, Cumbernauld, East Kilbride and Milngavie. They will close their doors in January next year. 

The branches had been transformed into Virgin Money stores in the last year, after their merger with Clydesdale Bank. 

Virgin said the closures are due to a "downward trajectory" in branch visits, with more people using their digital services.

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The company says it will try to retain as many jobs as possible, but up to 112 people could be facing redundancy.

The decision has been made based on location, usage, proximity to alternative stores and lease arrangements.

Fergus Murphy, Group Customer Experience Director at Virgin Money said: “As our customers change the way they want to bank with us and conduct fewer transactions in-store, we must continue to evolve the role of our stores into places where we showcase our products and bring our digital services to life.”

"Written notification will be sent to customers and posters will be displayed in each affected store at least 12 weeks before they close, providing details on the alternative ways customers can continue to manage their accounts, including nearest alternative stores, ATMs and Post Office counters. 

"Virgin Money will work with customers to support a smooth transition, particularly where vulnerable customers are concerned. A range of support services will be available prior to store closures, including digital workshops to help customers become more comfortable with digital banking.

The full list of closures affecting the Glasgow area are: 

Airdrie - January 25, 2022
Cumbernauld - January 6, 2022
East Kilbride - January 24, 2022
Milngavie - January 12, 2022

Unite the Union has argued this will "disproportionately" affect Scotland with 12 out of 18 UK closures.

Debbie Hutchings, Unite industrial officer, said: “The proposed closure of twelve Virgin Money branches across Scotland is not only shameful but bizarre as the group has just about completed the rebranding exercise of the former Clydesdale branches.”

“The announcement will disproportionately impact on workers and communities across Scotland, and it is here where the Virgin Group axe will fall the hardest. Island communities from Portree to rural towns such as Wick are going to be left behind by Virgin Money. Our nation’s town centres from Cumbernauld to Musselburgh will be further hollowed out as fewer people will come into town if there is no bank branch. This will directly hit the businesses that remain on the high street.” 

“The Virgin Money Group claim the principal reason for the closures is down to its digital banking drive. However, what happens to the people in our Island and Highland communities where internet reception is notoriously poor not to mention the difficulties which many people have in using mobile app technology.” 

“The Virgin Group has abandoned all social responsibility with these proposed closures, and they are completely disregarding the damaging effects that these closures will have on thousands of customers. We are calling on politicians in the areas affected to work with us to save these branches, and Unite will be raising this as a matter of urgency with the Scottish Government.”

Cumbernauld representatives have hit out at moves to close the branch there. 

Jamie Hepburn MSP said:"Cumbernauld is a town of some 50,000 plus residents with a wider hinterland.  If a town of this size cannot sustain a bank then it is alarming for the future direction of retail banking.

"I am also concerned about the position of Virgin customers who may struggle to access mobile and internet banking.  Other banks who have withdrawn from neighbouring Kilsyth have talked a good game about supporting such customers but in practice have not done so in an ongoing meaningful manner. Virgin's own announcement makes clear that over a third of their current customers are not digitally active at this branch, but provides little in the way of a commitment to supporting them."

Stuart McDonald MP said: "This is very disappointing news for the town and further limits access to vital financial services locally. As we face yet another bank closing further branches it does raise questions about the wider regulation of these businesses and how many of them are now failing to provide even the most basic local services. The fact the company are using footfall figures from the midst of a global pandemic as justification for their closure will only serve to fuel the suspicion that this has been in the planning for some time."