The trading arm of the Outer Hebrides’ main art centre and cinema has gone into liquidation with more than 20 jobs lost.
An Lanntair Trading Limited operated the cafe and shop at An Lanntair Arts Centre in Stornoway.
Gordon MacLure, restructuring partner at Johnston Carmichael, has been appointed liquidator.
The business closed due to Covid 19 restrictions in mid-March before being placed into liquidation on April 28. All 21 staff who worked for the company have been made redundant.
The company was a subsidiary of the local charity, An Lanntair Limited, which runs the arts centre.
The board of the arts centre is already exploring plans to reopen the business as a community facility, with hopes to create new jobs for local people once social restrictions are eased.
Liquidator Gordon MacLure said: “The unprecedented strain placed on the business, caused by the enforced closure of the restaurant due to the Covid-19 pandemic, has proved too great and the director concluded that the business was no longer viable.
“Our immediate focus is to ensure that all the staff receive their entitlements as soon as possible. We will be liaising with the various government agencies, including Pace, to make sure these employees receive all possible support at this difficult time.
“Unfortunately, as long as the Covid-19 restrictions remain in place it can be expected that many businesses throughout the Western Isles, and the UK as a whole, will find ongoing trading increasingly challenging meaning further business failures are almost inevitable.
In a statement on its website, An Lanntair said:”Safeguarding the future of An Lanntair Arts Centre has been a top priority for our charity’s board and senior team since the Covid-19 lockdown.
“We have been working hard with our partners to ensure the return of An Lanntair’s visual and performing arts programme, cinema, and all its charitable education and outreach work across the community. We are looking forward to welcoming all our audiences back when we reopen after Government restrictions ease.”
They confirmed the subsidiary had been placed into liquidation and said the staff had been made redundant.
It added: “Looking to the future of the Arts Centre, in the coming weeks An Lanntair will explore options for establishing a future catering offer from the venue; and ways to create new employment for local people once the government’s Covid-19 restrictions allow us to open An Lanntair’s doors again.”
