Tue, 02 Apr 2013 | ADMINISTRATION
Orkney-based jewellery firm Ortak has been placed into the hands of administrators who are now seeking a buyer.
Ortak, which is still trading form its 15 outlets across Scotland with 150 staff, brought in joint administrators - James Stephen and Graham Newton - from BDO after ongoing stagnant trading conditions led to financial difficulties at the firm.
Ortak was set up in the late 1960s in Kirkwall by designer Malcolm Gray, and has grown to become one of the leading names in gold and silver jewellery design manufacturing in the UK. It has two shops in Orkney, with outlets in Aberdeen, Dundee, Inverness, Stirling, Livingston, Newcastle and Sheffield. It also has two in Edinburgh and four in Glasgow.
The troubled firm had conducted a thorough review of its business, which had been hit by the increasing costs of raw materials and the adverse effects of the recession. The administration process will enable it to have some time to look into a possible sale as a going concern, Ortak said in a statement.
Joint administrator Mr Stephen said: “Our priority is to thoroughly review the business and determine what the available options are. The company will continue to trade.”
“Ortak is a well-known and iconic brand with a highly skilled workforce. The company holds significant stock levels, which will support trading for the foreseeable future,” he continued.
Ortak reported pre-tax losses of £77,336 in 2012, compared to profits of £111,452 for the previous year. Its turnover, however, had risen from around £35,000 to £7.3 million.
The firm hired dancer Flavia Cacace, a star of Strictly Come Dancing, to be the “face of Ortak”. Previous stars recruited for the role are Sarah Parish, Carol Smillie and Myleene Klass.
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