IT WAS hailed as a revolution in fish farming – Shetland's home-grown organic answer to the devastation facing cod stocks in the Atlantic and the North Sea.
As the producer of the world's first 100 per cent organic and sustainably farmed cod, No Catch grabbed headlines across the globe when the company launched its pioneering product four years ago.
The Vidlin-based firm's cod was soon on the shelves
of Britain's leading supermarket chains and on the menu at the renowned French Laundry restaurant in California's Napa Valley – where Hollywood star Demi Moore was one of the first to sample the new and distinctive Scottish product.
But in a major blow for the Northern Isles, it was revealed yesterday that the company has gone into receivership with the loss of up to 130 jobs.
No Catch was formed after a management buyout of the local company Johnson Seafarms.
Speculation about the long-term future of the company intensified earlier this year when it was announced that No Catch was seeking fresh backing, either in the form of new owners or investment.
Its managing director is Karol Rzepkowski, a Scot of Polish descent who once ran a Caribbean diving school.
However, it was revealed yesterday that Daniel Smith and Robert Caven, partners in the corporate-recovery firm Grant Thornton, had been appointed joint administrators of the company.
No Catch, which operates 27 sea farms off the Shetland coast, also produces organic salmon and trout, and has a cod hatchery in Sandwick, a factory in Scalloway, a head office in Vidlin and an office in Edinburgh.
A spokeswoman for the joint administrators said: "The company has 12,000 tonnes per annum of licensed cod farming capacity, a processing plant and a premium organic brand.
"The business was founded in the 1980s as a salmon farming business and focused on organic cod farming in 2003."
Mr Smith last night confirmed that negotiations were under way with several potential purchasers.
Mr Smith said: "The administrators are talking to a number of parties interested in acquiring the business or parts of the business. We will be working with the Shetland Development Trust to find a solution which preserves the business and employment on the islands."
The Shetland Development Trust is understood to have £1.1 million invested in the firm.
Mr Smith added: "The quantum of start-up funding required had been underestimated by management and shareholders.
"We understand that the majority shareholder of the company, Milestone Capital Partners Limited, had reached its funding limits and attempts by advisers and management to raise further funding were not successful.
"Significant finance has been committed to the development of the business, which has successfully launched a sales channel and proven its technical ability to farm organic cod.
"Although the company has started to produce sales, the stock of farmed cod is immature, currently limiting turnover."
Betty Fullerton, the councillor for Shetland Central, said: "This is very disappointing news because there are obviously a lot of jobs involved and that would be my main concern.
"I would certainly hope that some sort of package can be put together to retain as many of the jobs as possible on the islands."
The company rears up to four million cod, weighing up to 9lb at its sites in sea lochs around the Shetland coast.
Cod are fed with offcuts of wild herring and mackerel, and are raised in large circular pens where only 2 per cent of the space is ever filled by fish.
In its first year of trading, the company more than doubled its turnover from £3.5 million to £8 million.
The firm recently extended its range of products with the launch of "No Catch – Just Sea Trout" in Tesco stores.
The full article contains 637 words and appears in The Scotsman newspaper.
