Independent retailer McEwens of Perth has confirmed that its Inverness store will close by the end of the year.
The decision has been made in light of increasingly difficult trading conditions in the Highlands and the need to protect its flagship store in the Fair City.
Last month, bosses embarked on a formal consultation process with employees regarding the potential closure of the store in Church Street.
The closure announcement puts at risk three full-time and eight part-time jobs, while a further nine staff employed by business partners may also be affected.
Managing director John Bullough said: “We have made this difficult decision after much deliberation and following consultation with our Inverness-based staff.
“Unfortunately, we do not believe the store can become profitable in the foreseeable future.
“All our staff have continued working hard and with commitment during a period of uncertainty for them and their families and it is with considerable sadness that we announced this decision to our staff today.
“We have been privileged to be part of the retail scene in Inverness over the past 13 years, following our purchase of the former FA Cameron’s store, but the environment and retail climate has changed considerably in the last decade and the company needs to recognise that.”
Mr Bullough added: “This is a very sad move in Inverness but we must preserve the profitability of our other branches and focus on the core strength of the group.
“The company is currently finalising a vision and strategy business plan for a significant five-year investment strategy, which we are confident will bring the modernisations necessary to ensure that McEwens remains an exciting, well-loved and important retailing destination for both this and future generations, as it has been since 1868.”