Peterhead Projects Limited has gone into liquidation.
The news was delivered to staff members on Friday (May 19).
Peterhead Projects Limited was responsible for overseeing 2ReUse Recycling both at The Trading Post on Marischal Street and Berryden Road, the Lido Caravan Park, the Buchan Meadows Community Woodland project and the Green Spaces initiative.
It also provided a coordination role in the annual festive Gift Tree Appeal that has run successfully over recent years.
Begbies Traynor is working with the directors of Peterhead Projects Limited to assist with the organisation’s current financial problems.
A development trust, owned and led by members of the community and limited by guarantee, Peterhead Projects was established in 2009 with the aim of improving the local area through the provision of employment and by undertaking small development initiatives for the benefit of the community.
As well as running three charity shops in Peterhead, the charity also sought one-off funding from companies for larger projects.
A spokesperson for Begbies Traynor said: “Unfortunately, the organisation has run into financial difficulties and approached Begbies Traynor to help it to work through these issues.
“A winding up petition was presented in Peterhead Sheriff Court on May 19 and the company is expected to enter into provisional liquidation early this week.
“The shops have ceased trading with immediate effect and all ten staff have been made redundant.”
New Peterhead South & Cruden councillor, Stephen Calder, said: “The decision by Peterhead Projects Ltd to go into liquidation is very sad news for the town.
“I would wish to express my sympathy for the staff affected and would hope that the good work they have done can be continued in some form in the future.”