The Award-Winning Scottish Company Collapses: Redundancies Announced and Buyers Sought
Key Highlights :
It's been a difficult time for many businesses in Scotland and the news of Mara Seaweed Limited's collapse into administration is a further setback. The award-winning company, which pioneered the harvesting, processing and manufacture of a wide range of seaweed-based seasonings, saw its products featured regularly on the Great British Bake Off and won a number of "Great Taste" and food industry awards.
Callum Carmichael and Chad Griffin, partners of FRP Advisory, have been appointed joint administrators of Mara Seaweed Limited. The administrators said the insolvency was triggered by "severe working capital issues following the withdrawal of funding for a committed expansion programme, in turn leading to unsustainable cash flow problems with administration being the only option".
They described Mara Sewaeed’s reputation in the food industry, for innovation and quality, as “outstanding”. Founded in 2011 as Celtic Sea Spice Company, the business rebranded as Mara Seaweed in 2013 and operated from a purpose-built factory in Nasmyth Road, Glenrothes. It sold to wholesale, trade, and retail customers and direct to consumers.
The administrators are now marketing the brand and assets of the business for sale and are urging interested parties to make contact as soon as possible. Five staff are being retained for a short period to assist with the sale of stock but seven employees have been made redundant with immediate effect.
The joint administrators said they would “provide every support to the employees”, including assistance with claims to the Redundancy Payments Office for any wages or entitlements due. Mr Carmichael said: “Mara Seaweed had developed a very high profile and outstanding reputation within the food industry for its innovative approach to harvesting and for the quality of its products. “The administration provides an opportunity for a business operating in the food seasonings sector, or an entrepreneur keen to enter the rapidly growing seaweed seasonings business.”
The collapse of Mara Seaweed is a huge blow to the Scottish economy and the food industry in particular. The company had an impressive track record of innovation and quality and was a leader in the seaweed-based seasonings sector. It is now up to the administrators to find a suitable buyer for the business and its assets, and to ensure that the employees affected by the redundancies are supported in their claims for wages and entitlements.
