Wednesday, 2 May 2012

Caithness Beef and Lamb to sue Bank of Scotland

John Sutherland the owner of Caithness Beef and Lamb whose £4m "super abattoir" went in to administration before it started trading properly claims that Bank of Scotland starved it of funding.  The company was to provide an abattoir service in the north of Scotland to develop a range of Caithness-branded meat products, including prime cuts, sausages and haggis.  Over £1m was committed to the firm in the form of grants and the premises were state of the art. 

The administrators RSM Tenon said that it was the rising costs and competition in the meat processing industry that led to the administration.  John Sutherland claimed that he was putting in £41,000 a month to keep the business afloat and it was nothing to do with the costs and competition that led to its failure but a lack of funding.

Unfortunately, if the creditors situation is getting worse, as no more money is forthcoming and there are doubts of its viability in the market if it did become operational leaves little option. 

BoS perhaps would argue that they denied any more funding as they felt it unviable. 

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