Jobs explode as Dawnfresh Seafoods calls administrators with hundreds of Scots made redundant

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Hundreds of people have been left jobless after one of the country’s largest seafood producers and processors went bankrupt.

Administrators have been called in at Dawnfresh Seafoods, which operates seven fish farms in Northern Ireland and Scotland, as well as processing facilities in Uddingston, near Glasgow, and Arbroath.

Some 200 people lost their jobs on Tuesday as its loss-making processing plant in Uddingston closes with immediate effect, administrators said, with 77 staff retained to help co-administrators in the liquidation process.

Callum Carmichael, a partner at FRP Advisory Trustees, said the company “has been unable to overcome very serious financial problems at the Uddingston plant”.

Dawnfresh Seafoods provides a wide range of customers in the retail, wholesale, foodservice and export markets with a fully integrated range of services, from processing and sourcing fish to creating branded products such as RR Spink & Sons and Loch Etive.

As one of the UK’s largest fish and seafood producers, it processes 10,000 tonnes a year across 350 product ranges.

In recent years, the company has launched a major investment program to modernize its plant and systems and reduce costs, directors said.

But the activity continues to suffer from rising costs, overcapacity at the Uddingston site and cash flow problems.

Its Arbroath plant was saved, administrators said, with all 249 jobs safe after it was sold to Lossie Seafoods Limited, a subsidiary of Associated Seafoods Limited.

Carmichael said the administrators were “pleased to have secured a quick sale of the Arbroath facility in a deal that will also preserve substantial jobs in the city.”

In September last year the company announced it would spend £5million to expand the Arbroath site, and the company said it would close Uddingston by the end of this year after announcing its intention to move to a production site.

Labor MSP Monica Lennon said: “This is a shocking betrayal of Dawnfresh workers by multi-billionaire owner Alastair Salveson. As the cost of living crisis rages, this is a stark announcement that will impact workers and their families across Lanarkshire and the North East of Scotland.”

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Tanya S. Norvell