Caithness-based North Lands Creative Glass has entered liquidation, leading to the loss of six jobs.
The impact of Covid-19 is blamed for the collapse of the company, which opened in Lybster in 1995.
North Lands, which is a registered charity, launched with the aim of growing interest in the possibilities of glass as an art form.
It provided cultural activities to communities in Caithness and across Scotland.
Major trading challenges
Despite the directors’ efforts, in recent months the company started to face major challenges.
According to the joint liquidators, it suffered significant increases in costs due to high inflation, along with operational problems including challenges recruiting staff in the region.
Coupled with this, income was also declining.
‘Extremely disappointing’ for North Lands Creative Glass
Blair Nimmo and Geoff Jacobs, of Interpath Advisory, are the joint provisional liquidators.
Mr Nimmo said: “North Lands Creative Glass is a unique organisation, with a well-founded reputation for developing glass. It is extremely disappointing for the company’s many stakeholders, funders and employees that it could not continue to trade viably.”
The vision was to be an international centre of excellence in glass-making, dedicated to the study, appreciation and development of glass art.
The company generated income from a variety of sources, including studio rental, space hire, education and training, and aimed to self generate about 50% of its overall income, with the remainder obtained through support from public sector, charitable bodies, trusts and patrons.
It operated at a loss for a number of years but enjoyed continued support from its non-trade funding sources, Interpath Advisory said.
A trading deficit was avoided in 2021, when Covid-19 support mechanisms offset salary costs, but post-pandemic losses continued.
Efforts were undertaken to prevent closure
The directors took various actions to reduce the losses, including a strategy of investment through refurbishment of its premises, the purchase of a new furnace and creation of a cafe in an attempt to drive additional revenue.
But the decision was made to cease trading at the end of July, with six employees made redundant.
Mr Jacobs said: “Our focus will now be on supporting the employees affected, and securing and realising the business and assets of the company, which include freehold property, artwork, furnaces and other equipment.
“Clearly, it would be great to see the business continue in some manner.
“If any party is interested in acquiring the business and/or its assets, they should contact the joint liquidators as soon as possible.”
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