Page last updated at 16:56 GMT, Monday, 9 November 2009

Factory wind up proceedings begin

Glencraft
Aberdeen's Glencraft has been in operation since 1843

Liquidators may not move into Aberdeen's Glencraft workshop for blind and disabled people for several days, as it begins to be wound up.

The board of governors announced on Friday that the factory on Wellington Road was going into liquidation because of funding problems.

About 50 staff are affected - 31 with disabilities - and they were told to report for work as normal on Monday.

Staff have been receiving advice from employment experts.

Glencraft has been in operation since 1843 but proceedings to wind it up were beginning at the Court of Session in Edinburgh this week.

Glencraft's board said there was no other option to liquidation, blaming the city council's lack of support.

However the council argued it had tried everything to support the company.

Although it has ceased trading, existing furniture is still being sold at the site, alongside small amounts of production, using existing raw materials.

No decision

Chairman of the board, Ed Gillespie, is calling for any future profit made from the possible sale of the site to be ploughed back into helping the disabled and vulnerable in the city.

Glencraft worker
Glencraft has provided work for many years in Aberdeen

Aberdeen City Council bought the lease on Glencraft for £1.7m earlier this year.

Mr Gillespie predicted that value could double when the property market improves.

However the local authority said no decision had yet been made on what to do with the site.

One worker told BBC Scotland: "It's a disaster that so many talented people here are going to the thrown on the scrapheap."

The factory faced closure last year because of a reduction in council funding, but the local authority agreed to buy it and lease it back.

Glencraft reported record sales in January, with sales rising 34% on the same period the previous year.



Print Sponsor


SEE ALSO
Disability firm into liquidation
06 Nov 09 |  North East/N Isles
Row over future of city factory
05 Nov 09 |  North East/N Isles
Glencraft concern raised at PMQs
04 Nov 09 |  North East/N Isles
Success for factory for disabled
09 Feb 09 |  North East/N Isles
Backing for Glencraft future plan
13 Nov 08 |  North East/N Isles
New rescue bid made for Glencraft
03 Nov 08 |  North East/N Isles

RELATED BBC LINKS

RELATED INTERNET LINKS
The BBC is not responsible for the content of external internet sites


FEATURES, VIEWS, ANALYSIS
Has China's housing bubble burst?
How the world's oldest clove tree defied an empire
Why Royal Ballet principal Sergei Polunin quit

PRODUCTS & SERVICES

Americas Africa Europe Middle East South Asia Asia Pacific