A £25m lottery bid to save a clan chief's historic castle on the Isle of Skye has been turned down.
The money would have been used to restore the castle
The MacLeod family, which also owns the Cuillin mountains, planned to use the money to restore the dilapidated Dunvegan Castle.
Six years ago clan chief John MacLeod caused outrage after threatening to sell the Cuillin mountains for £10m to help pay for the repairs.
John Lambert of MacLeod Estates said 85 jobs were now at risk.
"If it (the castle) continues to deteriorate then it becomes more difficult for us to maintain it to health and safety standards," he said.
Mr Lambert said the castle would be likely to close as a result.
He told BBC Scotland: "If that happens, then obviously jobs will go with it and the castle is the main thrust for tourists to travel up to Skye.
"It will, without question, send a shudder through the local economy."
It was understood that if the bid was successful, Mr MacLeod, 60, would have given up ownership of both Dunvegan Castle and the mountains although he would have still had residence rights.