News / Demlane staff made redundant
SIX WORKERS at a Shetland mussel processing plant have been made redundant as the Demlane’s factory at the Kirkdale industrial estate, in Walls, closed its doors on Friday
On Thursday, Isles of Shuna plc and its subsidiary Demlane called in the administrators in an attempt to sell the processing operation as a going concern.
But on Friday, a spokeswoman for administrators PricewaterhouseCoopers, confirmed that six local people had now lost their jobs.
Three office staff based at Bathgate, near Edinburgh, will continue to be employed because of their “specific financial knowledge”.
The spokeswoman added that during the last 24 hours the administrators had already received “positive indications of interest in buying the processing plan” from a number of companies.
Joint administrator Graham Frost had said on Thursday that the company had encountered cash flow problems and an attempt to restructure the business had failed due to a lack of working capital.
As part of the restructuring exercise, the 15 Shetland mussel farming sites owned by Demlane had been sold to Shetland’s largest player in the world of shellfish farming, Blueshell Mussels, at the end of last month.
Meanwhile, Blueshell Mussels has entered into an agreement with SI Seafarms Limited to manage the sites. The SI sites were previously managed by Demlane.
Mussel farming insiders in Shetland have been watching recent developments with amazement, describing them as “obscure and strange”, and difficult to get one’s head around.
Mussel farming is a relatively new industry to Shetland that has created many jobs in rural areas.
Seen as a green way of harvesting a much sought after seafood, the industry is generally regarded as profitable.
Become a supporter of Shetland News
Shetland News is asking its many readers to consider start paying for their dose of the latest local news delivered straight to their PC, tablet or mobile phone.
Journalism comes at a price and because that price is not being paid in today’s rapidly changing media world, most publishers - national and local - struggle financially despite very healthy audience figures.
Most online publishers have started charging for access to their websites, others have chosen a different route. Shetland News currently has over 630 supporters who are all making small voluntary financial contributions. All funds go towards covering our cost and improving the service further.
Your contribution will ensure Shetland News can: -
- Bring you the headlines as they happen;
- Stay editorially independent;
- Give a voice to the community;
- Grow site traffic further;
- Research and publish more in-depth news, including more Shetland Lives features.
If you appreciate what we do and feel strongly about impartial local journalism, then please become a supporter of Shetland News by either making a single payment or monthly subscription.
Support us from as little as £3 per month – it only takes a minute to sign up. Thank you.