Walls Bakery and Saltness has appointed administrators.
Trading as Waas Bakery, the firm was incorporated in 2003 and operated as a bakery in Shetland, producing bread loaves, rolls, pastries, cakes and pancakes.
The business delivered its products to local cafes, shops, and a well-known supermarket.
Saltness, incorporated in 2016, owns the property from which the bakery trades.
The bakery operation and property were purchased by the present owner in 2016, but began experiencing challenging trading conditions during the Covid-19 lockdowns, which, together with ongoing cost pressures and lack of investment capital, resulted in cashflow pressures.
As a result of being unable to sell the business, and given the financial position of the companies, the directors appointed administrators and the bakery will cease to trade immediately.
There are nine employees within the bakery operation, all of whom have been made redundant.
Blair Nimmo, chief executive of Interpath Advisory and joint administrator, said: “Clearly this is disappointing news for this well-known local business, not least for the company’s dedicated employees.
“Our in-house specialist employee team will seek to support staff with the provision of information needed at this time and to claim their statutory entitlements from the Redundancy Payments Office.
“We are also committed to ensuring that the optimum outcome for creditors is achieved.”
Geoff Jacobs, managing director at Interpath Advisory, added: “It is hugely disappointing that Walls Bakery, which has been an important part of the Walls community in Shetland, is no longer able to continue to trade.
“We would advise that any parties who have an interest in the bakery operation or the property contact the joint administrators in early course as there remains an opportunity to acquire this well-established local business.”
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