Orkney Fishermen’s Society has been sold out of administration in a deal that saves the jobs of all 55 staff.
The 70-year-old co-operative was largely owned by inshore fishermen and is one of the main brown crab producers in the UK.
It runs a large processing facility in Stromness.
Its administration was caused by acute cash flow issues stemming from the impact of the pandemic, Brexit and a crab shortage five years ago.
The society has been acquired by Orkney Crab, a subsidiary of Oban-based PDK Shellfish Limited, for an undisclosed sum.
Reasons for Orkney Fishermen’s Society administration
Founded in 1953, Orkney Fishermen’s Society was created as a co-operative society by local fishermen.
Its factory processes crab for UK and international markets and it also trades in lobsters and whelks.
An onsite fish shop supplies a wide variety of seafood to the local community.
The administration was caused by cash flow problems stemming from the effects of Covid, significant recruitment issues arising from Brexit, and an acute shortage of crab in 2018 due to adverse weather.
This was coupled with the impact of high purchase prices caused by pressure from far east markets at the time.
Efforts by the directors to restructure the business and secure additional funding proved unsuccessful.
PDK Shellfish plans
PDK Shellfish‘s managing director Paul Knight started as a sole trader in 1998 with one chilled van, buying from one fishing vessel on the Island of Mull.
The company has since grown significantly, purchasing large quantities of live shellfish directly from multiple fishing vessels, predominately from all the Scottish islands.
Mr Knight said: “Orkney Fishermen’s Society has an outstanding reputation for the quality of seafood harvested and processed by its fishermen and staff.
“It will be a case of business as usual. We also have plans to invest in the company and the products.
“We will provide services to local fishermen as we look to re-establish the business.”
Orkney Fishermen’s Society will continue to operate from its existing premises.
The sale was handled by joint administrators Michelle Elliot and Callum Carmichael, partners with FRP Advisory.