The impending closure of a Thurso builders’ merchant could well be a sign of what is to come, a far north councillor has warned.
Struan Mackie said the plans by Travis Perkins to pull the plug on its outlet in the town will deal a “devastating” blow to the local economy.
As well the loss of five jobs, he said the demise will be keenly felt by the many firms its supplies in the area.
Thurso is on the hit list of 165 bases Travis Perkins has earmarked to shut
Most closures target smaller Travis Perkins locations where it is difficult to implement Covid safe distancing guidelines or where profitability has been hit by lower volumes.
Mr Mackie, the Caithness area committee chairman of Highland Council and a business consultant, said: “It’s bad news to lose any local employer even is it is part of a national chain.
“But it is particularly devastating because of the knock-on effects this is going to have in the local supply chain, with firms now having to look further afield to get what they need.”
He also fears other business failures will follow.
“My worry is that that this will be a sign of the times,” he added.
“We last faced a wave of closures in the wake of the financial crash of 2008 when Woolworths and other well-known high street names disappeared.
“My big worry I have is that we tend to struggle to replace businesses that have closed down.”
Mr Mackie said that since starting up 15 years in the former town scrapyard in Station Square, Travis Perkins had established a reputation as a good community firm.
“Over the years, it has donated materials to local good causes and helped charities in other ways so the closure is like a double hit for our community.”
Ross Mackinnon, who manages Travis Perkins’ Thurso base, yesterday said it is not known when it would close its doors.
Chief executive Nick Roberts said: “Whilst we have experienced improving trends more recently, we do not expect a return to pre-Covid trading conditions for some time and consequently we have had to take the very difficult decision to begin consultations on the closure of selected branches and to reduce our workforce to ensure we can protect the group as a whole.
“This is in no way a reflection on those employees impacted and we will do everything we can to support them during this process.”