Aberdeenshire-based online butcher Donald Russell has proposed the closure of its operations following a “comprehensive review” of its financial position and market conditions.
Donald Russell supplies premium meat products, serving restaurants and other business customers as well as direct-to-consumer clients through its online platform.
The proposal affects approximately 120 colleagues at the company’s Inverurie facility, all of whom will now enter a statutory 45-day collective consultation process.
“Unprecedented volatility in meat prices, unpredictable energy costs and the rising costs of doing business have created a perfect storm.”
Matthew Flood, Donald Russell
Matthew Flood, interim CEO of Donald Russell, commented: “Needless to say, this is not the outcome anyone wanted, and I recognise how unsettling this news is for our colleagues and their families.
“Donald Russell has been a respected Aberdeenshire business for more than 50 years, but the company has faced mounting challenges in recent years. Unprecedented volatility in meat prices, unpredictable energy costs and the rising costs of doing business have created a perfect storm that has left the business unable to continue trading in its current form.”
Donald Russell closed its cold storage distribution centre in Kintore in August last year, resulting in approximately 70 people leaving the business.
The company will now enter a 45-day consultation process with colleagues, during which it said it will “explore all alternatives”.
Flood continued: “We remain open to any viable alternative, including actively marketing the business for sale.
“However, we are also planning realistically for closure, and our absolute priority is to support our colleagues through this difficult period with transparency, dignity and all the assistance we can provide.”
Donald Russell said it will work with customers and suppliers during the consultation period to manage the potential wind-down in an “orderly and responsible manner”.
