Administrators have been appointed to Dawnfresh Holdings, Dawnfresh Seafoods and R R Spink & Sons (Arbroath).
Founded in 1973, and headquartered in Uddingston, near Glasgow, the business operates seven fish farms across Scotland and Northern Ireland, with production and processing facilities in both Uddingston and Arbroath.
Administrators from FRP Advisory noted that despite best efforts to affect a turnaround, the business has continued to suffer from rising costs, overcapacity at the Uddingston site and “unsustainable” cash flow problems.
Following a short marketing exercise to find a buyer, the joint administrators have secured a sale of the Arbroath facility to Lossie Seafoods, a subsidiary of Associated Seafoods, in a deal that includes the transfer of all 249 staff to the new owner.
The subsidiary business Dawnfresh Farming will continue trading solvently.
However, the “heavily loss-making” Uddingston facility will close with immediate effect, resulting in 200 redundancies, with 77 staff being retained to assist the administrators with the winding up process.
Callum Carmichael, a partner with FRP, said: “Dawnfresh is a high profile and highly regarded seafood business with a long tradition of supplying innovative products to a blue-chip customer base.
“Unfortunately, the business has been unable to overcome very serious financial problems at the Uddingston facility, but we are pleased to have secured a prompt sale of the Arbroath facility in a deal that will also preserve substantial employment in the town. Our focus is now on finding a buyer for the farming business.”