The company blamed its decision to pull out of Jersey on ‘increasingly challenging’ trading conditions, including significant increases in rent and shipping.
But managing director Nigel Holliday said Cimandis was doing ‘everything’ it could to continue trading in Guernsey, as well as in Alderney, Sark and Herm, all of which were covered by the company’s Guernsey division.
‘The decision to close our Jersey operation was incredibly tough, but each island is different and we are currently optimistic about our performance in Guernsey and the future of this part of our business,’ he said.
‘The devastating situation in Jersey is the result of specific operating conditions affecting our division in Jersey alone.’
He said Cimandis currently had no plans to strengthen its operations in Guernsey, but added affected Jersey staff being offered roles in Guernsey was one of the options being considered.
‘We are doing everything that we can to safeguard Cimandis and hope that we will be able to continue trading in Guernsey for the foreseeable future,’ Mr Holliday said.
‘However, in the current economic climate, prices and trading conditions are changing all the time.’
Cimandis is currently based on the Pitronnerie Road Industrial Estate, but its building is up for sale for £5.8m. The property details state Cimandis’ 15-year full repairing and insuring lease expires on Christmas Eve. The building’s current rent is £400,000 a year.
A Guernsey hospitality business owner, who did not wish to be named, said the news of Cimandis ceasing trading in Jersey had caused him to take stock of his business’ own situation.
‘No one knows the ins and outs of what’s going on, but when you see a big, pan-island business like Cimandis get into difficulty, it’s worrying,’ he said.
‘The fact they’re closing their business on an island which is bigger and has experienced much greater economic growth in recent times, it seems like a strange decision.’
He said a combination of high rent, competition, Jersey’s GST, and regulation would all have likely played a part in the business’ demise.
He hoped the news would serve as a reminder to the States of Guernsey about the need to encourage economic growth.
‘There have been all sorts of micro increases on things like employer social insurance, secondary pensions, extra regulation, and then GST potentially coming in here as well.
‘The States can’t keep squeezing business forever if the economy isn’t growing.’
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