The Horizons Cafe at Clickimin Leisure Centre is set to close at the end of July, it was agreed by trustees of Shetland Recreational Trust this week.
The decision could lead to redundancies for the nine full and part-time staff working in the cafe, but discussions are ongoing with management to discuss the scope for redeployment elsewhere in the organisation.
Earlier this year, SRT was bailed out thanks to an emergency £20,000 budget by Shetland Charitable Trust to allow it to remain open until 31st July, but it has been losing £5,000 a month.
Unless the outcome of a wider investigation into publicly-subsidised catering in Shetland – being carried out by the council’s economic development department – comes up with good news the unprofitable cafe will definitely have to close.
SRT general manager James Johnston said: “We very much regret having to take this decision, however this was necessary to meet our budgetary obligations. Mindful of the impact that the decision has on staff, we’re arranging meetings with staff to discuss potential redeployment.”
The report on the future of state-funded cafes is due to go before the charitable trust on 2nd July but Mr Johnston said the SRT had to “work on the basis that nobody is going to give us any money” in fairness to his employees.