Food wholesaler Cimandis has announced it will shut down its Guernsey operations at the end of August, 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 in 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.

States of Guernsey said Cimandis was a supplier for the Princess Elizabeth Hospital, the prison, and the Alderney Hospital.

It said “steps have been taken to ensure any disruption is minimised”.

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.”

Cimandis is due to trade until the end of August.

However, the timing of its closure was said to be “difficult” by Alan Sillett from Guernsey Hospitality Association.

He added: “This is a big test for everyone in our sector… there will be some strategies that need to be looked into to try and source products from maybe areas we hadn’t thought of before, and contingency plans to make sure we get through the next few months.”

He said the announcement had come as a “slight shock” but Cimandis was the “number two supplier”, with “dominant supplier” Manor Farm Foods now looking to “expand to cope”.

He said the change marked an “opportunity” for smaller suppliers but predicted butchery supply being a “potential concern”.

Describing the industry as a “resilient bunch”, he said it would adapt to cope.

Dr Sarfaraz Jamali, head of Jersey’s Muslim community, said Cimandis was a key supplier of halal meat – which involves specific methods of animal preparation according to Islamic guidelines.

He said: “I came to Jersey in 1988 and ever since we have been buying halal food from them and I’ve been recommending them to different communities coming to island and they have been buying from them.”

He said the firm had been “very good and helpful” and it was sad to see them go, with their supplies including frozen food which was used for parties and events.

He said they had sourced an “alternative supplier” but that the departure of Cimandis “would have an impact”.

In July, Cimandis closed its site on the Rue des Pres Trading Estate in St Saviour, Jersey, and blamed “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.

It said customers with concerns about product availability were encouraged to contact their account managers.

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