Food wholesaler Cimandis has announced it will shut down its Guernsey operations at the end of August 2025, just weeks after closing its Jersey depot due to mounting economic pressures.

The company, part of the Caterfood Buying Group, cited rising shipping costs, increased rent, and the logistical challenges of operating in island markets as key reasons for the decision.

The closure will also end Cimandis’s services to Alderney, Herm and Sark. It is currently not known how many jobs will be affected.

“Despite our best efforts, the economic environment has made it impossible to maintain a viable business model,” said managing director Nigel Holliday in a statement.

Deputy Adrian Gabriel, President of the States Committee for the Environment & Infrastructure, which is responsible for food security and food supply chains in Guernsey, said: “I share my thoughts with those who may have lost their job today and are now having to think about their next steps.

“It is always very difficult when an employer closes or goes out of business, but I know colleagues at the Job Centre will be ready to help those people if they need it.

“This closure may also have some impact on the local food supply chain in the short term, however we will be monitoring the situation going forwards to ensure that if needed, previously arranged contingency plans can be activated.

“The committee’s primary focus is on ensuring there is no critical impact to food supplies in the island.”

In July, Cimandis closed its site on the Rue des Pres Trading Estate in St Saviour, Jersey, also blaming “increasingly challenging trading conditions”.

At the time, the company said its Guernsey and inter-island services would continue unaffected.

Cimandis has pledged to support customers during the transition, including running stock clearance sales to help local food operators through the summer season.

The company said it was also working with recruitment agencies and local employers to assist affected staff in finding new roles.

Customers with concerns about product availability are encouraged to contact their account managers.

“We are incredibly grateful for the loyalty and support of our customers,” Mr Holliday added.