Betting shop in Inverness faces closure
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BOOKMAKER Scotbet's Highland branches in Culloden and Aviemore are to close after the company went into receivership.
Although a buyout deal by former members of the Scotbet management team looks set to save the majority of Scotbet's 41 branches, its Keppoch Road shop in Culloden and its Aviemore Shopping Centre outlet are among the 11 facing closure.
The closure of the Strathspey branch now leaves the area without a bookmakers.
The bookmaker has been sold to Scotb123, which is run by former Scotbet directors, in a deal which will safeguard 127 jobs and 30 betting shops, although 27 jobs will be lost as a direct result of the closures.
Scotbet is among a number of bookmakers which have faced difficulties as a result of increased competition, especially from the growth of online betting, and changes to the maximum fixed odd betting terminal (FOBT) stakes in April when the UK government cut maximum bets on a spin from £100 to £2 because of fears that lives were being ruined by addictions to the machines.
Earlier this month, William Hill said that it could close as many as 700 high street shops, putting 4500 jobs at risk, while Ladbrokes owner GVC had previously said of its 900 shops were at risk, threatening 5000 staff.
Scotb123 is led by John Heaton, who is a former Scotbet chairman, and acknowledged the FOBT changes had been instrumental in Scotbet going into receivership.
Mr Heaton said: “I am pleased that we have managed to save 30 of the Scotbet shops. This has been a very difficult time and I am particularly sorry for the staff in the branches which have closed.
“Independent bookmakers have been hit hard by increased costs and the reduction of the FOBT stake was the straw which broke the camel’s back.”
The sale was facilitated by joint receivers Paul Dounis and Gareth Harris of RSM Restructuring Advisory LLP.
Mr Dounis said: "The business faced a number of changes to the trading landscape, like other businesses in the sector, and was unable to continue to trade.
"We are working closely with Redundancy Payments Service to support those employees who have been made redundant to process claims as quickly as possible."
