A north-east bakery has shut its doors after failing to win £1million in support from a lottery fund.
More than two dozen workers at John Smith & Sons in New Pitsligo have lost their jobs at the business, which was rescued from closure two years ago.
The community-based owners of the historic company had an ambitious £1.4million expansion plan which is now in ruins after the Big Lottery rejected its proposals.
Fraserburgh Development Trust, which saved the bakery when it took it over in 2014, said it decided to shut down the 110-year-old operation immediately due to environmental health concerns over the site as well as rising repair costs.
The John Smith & Sons bakery in New Pitsligo first opened its doors to the public in 1903.
The development trust set up the John Smith’s (New Pitsligo) community interest company (CIC) to take over the business after its owner, John Smith, decided to retire.
The effort saved 25 jobs and was welcomed by former first minister Alex Salmond, then MSP for Aberdeenshire East, as “vital to the local economy”.
Fraserburgh Development Trust chairman, Ian Watson, expressed his disappointment at the outcome of the application to the lottery to build a new bakery and training centre in the village.
He said: “A great deal hinged on the Big Lottery decision, mainly the funding towards the project and the new build, which will sadly not go ahead now.
“Everyone is very disappointed at the outcome, the John Smith’s (New Pitsligo) CIC board, the Fraserburgh Development Trust, employees and all who have supported the project in New Pitsligo and beyond.”
In a statement, the trust said the lottery committee had “acknowledged the effort that had been put into the application”, but that it had concerns that the loss-making bakery would struggle to survive during the one-to-two-year process of building new premises in Church Street.
The CIC board said it was “considering the options available for the benefit of all stakeholder groups”.