The recession has claimed a high-profile Scottish victim. The Orkney-based jewellery firm, Ortak — best knonwn for its iconic Celtic designs — has gone into administration. Over 150 jobs at 15 outlets across Scotland are under threat. The company blames the hard economic conditions and the rising cost of raw materials.
Ortak Gift Shop
In a statement, the board announced that “…after an exhaustive review of the business we feel unable to continue to trade outside of insolvency protection and in the circumstances has appointed BDO as administrators to provide a breathing space in order to explore a sale of the business as a going concern.”
The administrators have confirmed that no redundancies are planned while they review the business, adding that “the company currently holds significant stock levels which will support ongoing trading for the foreseeable future.” Of the people employed in the business, they said that forty four were based at the company’s head office in Kirkwall, with 111 others employed in retail outlets across the country.
Liam McArthur
Worried by Ortak’s Move into Administration
“Unfortunately the economic climate and difficult trading conditions have significantly affected the business,” said James Stephen from BDO. “Our priority is to thoroughly review the business and determine what the available options are. The Company will continue to trade while these are explored. Ortak is a well known and iconic brand with a highly skilled workforce. We are grateful to all staff for their support and help at this time.”
Local MSP Liam McArthur described the move as a very worrying development. “I know every effort is being made by the management to limit the impact on the business,” he said, “and I have been reassured by the minister that he and his officials stand ready to provide any assistance that might be necessary. Ortak is a strong, popular and iconic Orkney brand. Despite the difficult trading conditions at present, I hope that these attributes will enable the company to weather this storm”.