Icetech battles to survive after Comet collapse

CASTLETOWN freezer firm Icetech is "investigating every avenue" to keep the firm going but faces "a very rocky road" according to its managing director David Morrill.

The company had to pay off around 30 of its staff earlier this month when its main customer, electrical retail giant Comet, went into administration.

Icetech is now holding talks with its parent company John G. Russell – the Glasgow-based transport group – as well as government and enterprise agency representatives in a bid to save the remaining jobs.

Mr Morrill said: "During the past 10 days, we have been in regular discussions with the senior team at the Russell Group, representatives from Westminster and Highlands and Islands Enterprise.

"It’s essential that we investigate every avenue in order to find a viable way forward for Icetech without any further financial impact on our parent company. We already have some positive leads which we are actively pursuing but we face a very rocky road as we move forward.

"Over the coming few weeks, the situation will become clearer and we will continue to keep all employees informed of developments. Hopefully, we will find a secure way forward for Icetech Freezers and protect the future of the jobs it provides."

Mr Morrill said that Icetech Freezers, along with many other companies, had "taken a hit" following the administration of Comet, both financially and in terms of its volume of business.

Mr Morrill added: "We are still assessing the full extent of this hit and working with the administrators in an attempt to recover or be compensated for any unsold product.

"This is proving to be a very difficult and time-consuming exercise although some progress has been made and we are hopeful of negotiating a settlement very shortly."

As reported last Friday, far north MP John Thurso said the firm had been "kicked in the teeth by rogue venture capitalists" and pointed out that Comet was taken over by a private equity company about a year ago.

The Caithness, Sutherland and Easter Ross MP said he was unhappy at what has happened to Icetech and has urged the UK and Scottish governments, the local enterprise company and Highland Council to do all they can to save the remaining jobs at the Murrayfield plant.

The Liberal Democrat MP said it would be "a complete travesty of justice" if the firm had to cease trading because of the actions of the American venture capitalists.

Icetech is believed to be owed several hundred thousand pounds by Comet which is understood to have accounted for more than 50 per cent of the firm’s production.

The freezer firm also supplies other leading companies such as Currys and Argos.

John Thurso met with UK Business Secretary Vince Cable and Scottish Secretary Michael Moore to see if the Government could assist the firm.

The MP said Icetech told him Comet owed it "a substantial debt" which had resulted in the job losses and could put the future of the firm in doubt.

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