Ortak enters administration after long-term review

Meadowhall-shop.jpg

Brand seeks buyer for business after "exhaustive" review of company.

Orkney-based jewellery brand Ortak has gone into administration after an "exhaustive review of the business".

The announcement was made by the Ortak board at the weekend. The company has appointed James Stephen at Glasgow firm BDO as administrator, with a view to selling the business.

A statement from the brand, which was founded in the late 1960s by Michael Gray, said: "The board regrets to announce that after an exhaustive review of the business we feel unable to continue to trade outside of insolvency protection and in the circumstances [have] appointed BDO as administrators."

Story continues below
Advertisement

Ortak says BDO should provide it with "breathing space" in order to explore the potential of selling the business as a going concern.

The brand said its current business model has come under pressure over the past few years as the recession has impacted on the high street and the cost of raw materials has increased significantly.

In November last year Ortak posted losses totalling £77,000 in the 12 months to January 2012. At the time the brand’s managing director Alistair Gray said that retailers were facing tough times, and that everyone in the jewellery was industry was struggling against the rising prices of raw materials.

Ortak currently employ 155 staff, 44 of which are based at its Orkney headquarters, and runs 15 stores across Scotland and England in cities including Edinburgh, Inverness, Newcastle, Sheffield and Aberdeen. Its head office and manufactory are also based on Orkney.
 

Authors

*

Related posts

Top