News / Major fish probe finishes Framgord
AN INVESTIGATION into a major consignment of salmon products bound for Russia has forced Shetland fish marketing business Framgord to call in the receivers.
Company owner Frank Johnson said 11 jobs will be lost as a result of the business being closed down after almost 30 years in the trade.
The move on Tuesday followed the granting of a court order to Aberdeen City Council allowing them to destroy 207 tonnes of frozen fish to prevent it entering the food chain.
The fish was being stored in a warehouse in the city belonging to Framgord.
Speaking on Thursday, Johnson said the problem arose as a result of a technicality over paperwork and he very much regretted the consequences.
The investigation began after Aberdeen environmental health officers received a complaint about fish being illegally exported without the correct identification labels.
The city’s chief environmental health officer Ivor Churcher said fish products had to be issued with a unique identification mark by the local authority allowing them to be traced back to the original producer.
“During our investigation, our environmental health officers discovered large quantities of unmarked product along with product with an identification mark from a previously approved premises, which had ceased processing,” Churcher said.
“Officers established that the approved identification mark was continuing to be used to export product to Russia although the approval did no longer exist.
“This was an extremely complex investigation and made use of extensive staffing resources and expertise.”
Johnson has been fighting his case since June and it was only when the court order to destroy the fish came through that he had to accept defeat.
“The fish was seized on 27 June, so the last 18 weeks we have been defending the seizure,” he said.
“We have been compromised as a business, so I asked the bank to put us into receivership two weeks ago, and the receivers were appointed on Tuesday this week.
“We are devastated that this has happened, but we all have to try and move on with our lives and try to look forward.”
Johnson told other media that he genuinely believed they were “alright” using the identification mark on the fish.
“This is not good for the seafood business of Scotland,” he said.
“I would have liked nothing more than to have sat down with officials and resolve matters directly.
“This has been unfortunate and we so much regret this incident and any problems we have caused through a misunderstanding.”
Financial advisory company Zolfo Cooper have been appointed as receivers.
Meanwhile it has been confirmed that Framgord owed the Shetland Development Trust more than £300,000 from a 12 year old loan.
Shetland Islands Council issued a statement sayaing: “It is regrettable that such a long-standing and pioneering company has been forced into receivership.
“Framgord Limited received a loan from the Shetland Development Trust in 2000, and there is an outstanding balance of £324,000.
“Shetland Islands Council, as sole Trustee, is now working with Zolfo Cooper and Framgord to recover that outstanding debt.”
Over the last 27 years Johnson and his team have worked hard to develop the local seafood industry and find new markets for farmed salmon.
In 2009 Mr Johnson re-opened the Whalsay fish factory to produce frozen salmon portions, but the venture collapsed a year later as high salmon prices pushed the company out of business.
In previous years, the company was awarded both UK and Scottish exporter of the year accolades.
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