Shetland FM has gone into liquidation, with a £610,000 outstanding loan to development agency Highlands and Islands Enterprise (HIE).
Company owner Frank Strang said the bottom line was the facilities management company had lost the Sella Ness accommodation contract.
“I’m not particularly happy about it,” said Mr Strang, but added that the company’s demise was not new. “In effect the company died 18 months ago.”
He had hoped oil and gas business would pick up, but that did not happen. Without revenues coming in they had been forced to wind down the company, which he said had been “inevitable”.
The liquidation came about because they “needed to tidy up the house”, adding that he had a fiscal responsibility to the firm.
“The main thing for me is that jobs were not lost 18 months ago,” he said.
The company boss also said he was in “constant dialogue” with HIE regarding a £610,000 oustanding loan, which the development agency gave them in 2017 to restructure its debt.
He said it was “highly unlikely” ownership of the Saxa Vord Resort and self-catering accommodation in Nordabrake, which the loan is secured against, would be transferred to HIE.
“[HIE] continue to support everything that we are doing on every front,” said Mr Strang. “They want us to continue.”
Shetland FM going into liquidation has not affected his other business ventures, said Mr Strang, including the Shetland Distillery Company, which he described as “doing well”.
The one positive from the liquidation was that it had freed the businessman up to focus on Saxa Vord and the space centre.
Mr Strang said his “absolute priority” was delivering on the space centre, and that there would be a big announcement soon regarding the isles’ space industry.