An award-winning Aberdeen fish factory is facing closure and the loss of all 50 jobs.
Trawlpac Seafoods, based in Craigshaw Place, West Tullos, is consulting employees about its future but the prospects of it surviving look grim.
Managing director Linda Cross told the Press and Journal yesterday the bosses planned to shut the factory by the end of October after failing to reverse trading losses.
She added: “It is with sadness and regret that the board of directors has proposed that Trawlpac Seafoods should cease trading, taking into consideration the many issues facing the company.
“Consultation with our employees on the proposed closure and potential redundancies has commenced today.
“If following the consultation period the decision to proceed with a closure is ratified, the board intends to conduct an orderly shutdown of the business.”
Family-owned Trawlpac was set up in 1975 by the late Peter Crockford. It manufactures a range of quick-frozen and smoked seafood products.
In 2007, it was among a group of north-east fish businesses to receive Scottish Seafood Training Association certificates for their commitment to staff training.
The firm has also been recognised at the Scottish Food and Drink Excellence Awards.
But it suffered a blow last year when the Health and Safety Executive served it with an improvement notice, alleging that employees were exposed to harmful legionella bacteria.
Trawlpac quickly carried out improvements and no further action was taken.
But the business has also had an increasingly hostile trading environment to contend with.
Mrs Cross said: “Over the past 40 years the company has developed a reputation for producing high quality fish products to foodservice customers throughout the UK.
“However, the decline in the white-fish industry and reduced fish stocks and quotas – combined with high fresh fish prices – has significantly impacted the profitability of supplying frozen fish products to the foodservice sector.”
The firm had suffered losses in recent years, she said, adding: “The management who own and operate the family business has tried to implement various strategies…to try to achieve profitability, with the aim of sustaining a long-term business and safeguarding the workforce.
“Future significant investment is also required and this is not justifiable given difficult trading conditions and low margins.
“It is, therefore, with regret that the company has started the consultation process on its future and the potential for making the entire 50-strong workforce redundant.”