The Loch Duart Smokehouse in South Uist is to close with all staff being made redundant.
A statement from the company, who will retain fish farms in North and South Uist, said that there was still a chance that it could re-open in future.
The statement said: “With much regret, we will be closing the Smokehouse. While the Smokehouse produces a wonderful, delicious product, unfortunately the business has not been the success that we had envisaged.
“We had been hoping, up until yesterday the 15th April, that a local consortium would take over business in time to ensure continuity of supply. There is still a chance that another consortium will take on the Smokehouse but, unfortunately, the break in production is now unavoidable. Beyond that, in 2014, Loch Duart Ltd had invested a great deal of effort into setting up a form of community ownership. This fell through for reasons outside our control. We regret that the staff have been made redundant but we aim to absorb some into the fish farming operations.”
They added: “Loch Duart is still strongly committed to business within the Hebrides and continues to employ twenty-two full time members of staff in its fish farming operations on North and South Uist. Loch Duart has owned the Smokehouse since 2008 and enjoyed sharing this wonderful smoked product with seafood lovers around the world. The company wishes to thank the Smokehouse customers for their business.”