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THE Shetland based seafood company Isle of Shuna has been placed in administration, along with its subsidiary Demlane Ltd.
This specialised business mainly harvests, processes and sells fresh mussels and cash flow is thought to be at the heart of its problems.
PricewaterhouseCoopers, who have been appointed administrators, hope to be able to sell the firm to another seafood enterprise which would give it the necessary working capital to continue.
Joint administrator Graham Frost told BBC Scotland: "Isle of Shuna has grown successfully over the years and is well regarded by customers.The business had encountered cash flow problems in recent months.The board have since reluctantly concluded that without additional working capital and investment this path is no longer feasible on a standalone basis."
Isle of Shuna harvests only rope grown mussels to ensure high quality shellfish that is free from grit. Because they are grown in a tightly controlled environment they are much less likely to suffer contamination. This makes it a quite exclusive venture which looks likely to attract a number of interested parties. The company supplies to both the retail and catering sectors. It also has a growing export trade to Belgium in particular where mussels are a national dish.
In 2005 Isle of Shuna bought up Demlane is a long-established business with a track record of profitable operations and a well respected brand name. It has the largest mussel farm in Shetland, was the first to develop long line rope-grown culture of mussels and has a dedicated processing and despatch centre. At the time of the acquisition the deal took Isle of Shuna to the position of leading independent Scottish mussel supplier, and there were high hopes that this could be the step to further growth in the market place.
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