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Disability firm in administration Disability firm into liquidation
(40 minutes later)
An Aberdeen furniture factory which employs 35 blind and disabled workers is to go into administration, it has been announced. An Aberdeen furniture factory which employs blind and disabled workers is to go into administration, it has been announced.
Glencraft's board said there was no other option. More than 50 "devastated" workers - including 31 with disabilities - are set to lose their job as a result.
Management had earlier warned they had an indication of the city council's lack of support for a modified business plan. Glencraft's board said there was no other option, blaming the city council's lack of support for a modified business plan.
However the local authority claimed it had tried everything to support the business. However the council claimed it had tried everything to support Glencraft.
One worker told BBC Scotland: "It's a disaster that so many talented people here are going to the thrown on the scrapheap."
The Glencraft board had called the crucial meeting
Some of the board of governors at Glencraft resigned to show their feelings.
Chairman Ed Gillespie said: "It could have been avoided, this is a very special place.
"With the current lack of support from the council, today's decision was inevitable."
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.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% from the same period the previous year. Glencraft reported record sales in January, with sales rising 34% on the same period the previous year.
Aberdeen South Labour MP Anne Begg had raised the fresh fears about the factory's future during Prime Minister's Questions on Wednesday.Aberdeen South Labour MP Anne Begg had raised the fresh fears about the factory's future during Prime Minister's Questions on Wednesday.