North firm ‘kicked in the teeth’ by Comet
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CASTLETOWN freezer firm Icetech has been “kicked in the teeth by rogue venture capitalists”.
That was the claim made yesterday by far north MP John Thurso after the company had to pay off around 30 of its staff when its main customer, electrical retail giant Comet, went into administration. Comet was taken over by a private equity company about a year ago.
The Caithness, Sutherland and Easter Ross MP hit out at what has happened to Icetech and 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.
Mr Thurso said it would be “a complete travesty of justice” if the firm – owned by Glasgow transport company John G. Russell – 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 over 50 per cent of the firm’s production. The freezer firm also supplies other leading companies such as Currys and Argos.
Mr Thurso said Icetech contacted him last Friday and told him Comet owed it “a substantial debt” which resulted in the job losses and could put the future of the firm in doubt.
Senior management from Icetech were meeting in Glasgow yesterday to discuss the company’s plight.
The Liberal Democrat MP told the John O’Groat Journal he has met with UK Business Secretary Vince Cable and Scottish Secretary Michael Moore to see if the Government can assist the firm. Both ministers have visited the factory.
Mr Cable, who was there last month, has asked officials to see if anything can be done.
Mr Thurso also urged Highlands and Islands Enterprise and Highland Council to help Icetech resolve its current difficulties.
“There’s a tremendous goodwill to try and find a way to help Icetech because it does not deserve this. I will do everything I can to make something happen,” said the MP.
“I feel incredibly sorry for the people who own the company. They painstakingly rebuilt and modernised the plant and a number of staff have given their working lives to the business in one guise or another.
“It is just plain wrong that their dedication should be rewarded by getting kicked in the teeth by rogue venture capitalists who asset-stripped Comet.”
He said the freezer firm did “a fabulous job” recovering from the problems it had four to five years ago and was making a profit in what is a competitive market.
“Icetech has a good management, a good workforce and a good product and I would hope that it will survive its present difficulties,” added the MP.
It is understood the firm recently recruited about 12 additional staff to help cope with the increased demand for its products in the run-up to Christmas. They were among the 30 paid off last Friday.
No-one from the Castletown factory or from John G. Russell in Glasgow was available to speak to the Groat – despite repeated attempts to contact senior managers.
In a brief statement, Icetech managing director David Morrill said: “Comet was a large customer of ours. The loss of such a customer creates a large hole in our order book. We have to react rapidly in a way that best protects the business.”
As reported exclusively in Wednesday’s Caithness Courier, local community and council representatives described the loss of the jobs at Icetech as “very disappointing” and “a blow to the economy”.
Roy Kirk, HIE’s far north area manager, said the agency is working “very closely” with the firm.
Icetech took over the freezer firm from Norfrost which was founded in 1972 by Alex and Pat Grant. It established itself as one of the largest and most successful manufacturers in the Highlands. But after 33 years it went into receivership in May 2005 with more than 70 employees losing their jobs.
The firm was later taken over by John G. Russell under the name Icetech Freezers Ltd.
Comet went into administration last week with Deloitte appointed as administrators.
