Orkney Fishermen’s Society, described as one of the UK’s leading suppliers of crabs, lobster and fresh seafood, has been sold out of administration in a deal that saves all 55 jobs.
Joint administrators Michelle Elliot and Callum Carmichael, partners with FRP Advisory, have sold the business to Orkney Crab, a subsidiary of Oban company PDK Shellfish.
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The administrators flagged "significant recruitment issues" arising from Brexit as one of the factors in the fall of the Orkney Fishermen’s Society into administration.
Founded in 1953 and based in Stromness, Orkney Fishermen’s Society was created as a co-operative society by local fishermen to process and market their own produce to local and mainland customers, the administrators noted.
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The Orkney Fishermen's Society factory processes crab for UK retail and international markets and trades lobsters and whelks for local and export customers.
An on-site fish shop supplies a wide variety of seafood to the local community.
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The joint administrators said: “The administration was caused by unsustainable cash flow problems stemming from the effects of the Covid pandemic, significant recruitment issues arising from Brexit, and an acute shortage of crab in 2018 due to adverse weather, coupled with the impact of high purchase prices caused by pressure from Far East markets at the time and ongoing supply issues going forward.
“Efforts by the directors to restructure the business and secure additional funding proved unsuccessful and the company was placed in administration. Orkney Crab Ltd has acquired the business and assets of Orkney Fishermen’s Society and will continue to operate the business from the existing premises.”
Paul Knight, of PDK Shellfish, said: “Orkney Fishermen’s Society has an outstanding reputation for the quality of seafood harvested and processed by its fishermen and staff. We are delighted to have secured the future of one of the UK’s leading seafood businesses. It will be a case of business as usual and we also have plans to invest in the company and the products and provide services to local fishermen as we look to re-establish the business.”
Ms Elliot said: “Orkney Fishermen’s Society is one of the UK’s oldest seafood co-operatives with a long history of supplying high-quality seafood to customers across the UK and beyond. We are delighted to have secured a sale of the business to Orkney Crab Ltd and wish the new owners every success with their new venture. We are particularly pleased to have secured the transfer of all 55 staff and would like to thank everyone involved for their support.”
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