Orkney Fishermen’s Society, which operates one of the UKs premier brown crab factories, processing and marketing up to 3,000 tons of crab per annum, has been sold out of administration in a deal that saves 55 jobs.
The Stromness-based society, founded in 1953, collapsed after suffering “unsustainable cash flow problems” following Brexit, the pandemic and growing cost increases. It has been sold to Orkney Crab, a subsidiary of PDK Shellfish
Orkney Fishermen’s Society Limited (OFS) has been sold to Orkney Crab Ltd, in a deal that saves the jobs of all 55 staff.
A subsidiary of Oban-based PDK Shellfish Ltd, Orkney Crab has acquired the business and assets of OFS and will continue to operate the business from the existing premises in Stromness.
OFS had been in administration, due to many factors including cash flow problems due to the COVID-19 pandemic, recruitment issues due to Brexit, and the impact of high purchase prices caused by pressure from far east markets.
Efforts by the directors to restructure the business and secure additional funding proved unsuccessful.
OFS process crab for UK retail and international markets and trades lobsters and whelks for local and export customers. An onsite fish shop supplies a wide variety of seafood to the local community.
Commenting on the acquisition, Paul Knight from PDK Shellfish Ltd said: “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.”
(Source: The Orcadian Newspaper)
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