Keiss abbatoir owner to sue bank for £10m
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A CAITHNESS businessman is to sue the Bank of Scotland for around £10 million after one of his companies went into administration.
John Sutherland, who owns Caithness Beef and Lamb, blames the bank for the collapse of the £4m state-of-the art abattoir and meat-processing plant at Keiss.
He said: "They are an absolute disgrace to the country," and claimed the Bank of Scotland reneged on its original commitment to the project.
"We all signed up to the business plan and all agreed to it, but when the building was nearly completed the credit crunch happened and the bank was told not to lend money to anyone.
"At that time, we were still looking for around £250,000 from the bank but we never got it – although I did manage to get £125,000 back through a legal process," Mr Sutherland told the Caithness Courier.
"We never got it and that’s why we never got started in the way we planned," said Mr Sutherland.
He intended to provide an abattoir service for farmers in the North and develop a range of Caithness-branded meat products including prime cuts, sausages, cooked hams and haggis.
But the business only undertook work for local butchers before production ceased last year with the loss of 15 jobs. Three people were retained to look after the premises and keep the licences up to date.
Mr Sutherland said it was costing around £20,000 a month just to keep the facility going.
"It was costing me a fortune to keep the place open. It was sucking money out of me personally and my other businesses," he stated.
Mr Sutherland operates a number of other firms, including Caithness Stone Industries, Wick’s Waterfront nightclub and the Wick Laundry, and stressed they were all doing well. He employs a total of 120 people.
"I am looking for around £10 million from the Bank of Scotland. That is a very realistic figure. It could be a lot more," he said.
That sum would cover the money promised by the bank, as well as the cost of equipment, loans and other outlays, he claimed.
"Hopefully, I can get the money from the bank and in the longer term get the business going again. After all, if the bank had done the right thing in the first place we would not be in this position."
Mr Sutherland added local MP John Thurso and MSP Rob Gibson had been "helpful" but the Scottish and UK governments "seem to have no influence with the banks".
The Bank of Scotland declined to comment on Mr Sutherland’s claims when contacted by the Courier yesterday.
Administrators RSM Tenon said the search has begun for a buyer of what it described as "one of Europe’s most advanced meat-processing plants".
The joint administrators, Iain Fraser and Tom MacLennan, hope the facility will attract interest from Europe’s farming and food processing industries. They said the administration was caused by intense competition and rising costs within the meat slaughtering and processing sectors.
They pointed out the facility consisted of an abattoir with the latest meat processing and packing technology. The production area extends to 1300 square metres and includes offices and storage.
Mr Fraser said: "We are selling a virtually new plant that could be brought into production relatively quickly and easily. The plant took three years to design and build, and features some of the best slaughtering and food-processing equipment available. The administration represents an outstanding opportunity for an existing meat or food-processing business to instantly acquire additional capacity. Alternatively, the facility could appeal to an entrepreneur who sees an opportunity to launch a new abattoir and branded meat-processing business.
"We hope the UK meat industry will rally round and a buyer will come forward to acquire this superb facility."
