Founded in 1974 and headquartered in Inverurie, the premium butcher’s staff has recently entered into a statutory 45-day collective consultation process.
The business is proposing to close its operations following a comprehensive review of its financial position and market conditions.
However, in a statement given to the press, Donald Russell did pledge to “explore all alternatives”.
The company also confirmed that it would continue to work with customers and suppliers during the consultation period to manage the potential wind-down in what it called an “orderly and responsible manner.”
A Royal Warrant holder for close to 40 years, the firm specialises in premium meat products, serving restaurants and other business customers as well as direct-to-consumer clients through its online platform.
“Needless to say, this is not the outcome anyone wanted, and I recognise how unsettling this news is for our colleagues and their families,” interim CEO, Matthew Flood said.
“Donald Russell has been a respected Aberdeenshire business for more than 50 years, but the company has faced mounting challenges in recent years. Unprecedented volatility in meat prices, unpredictable energy costs and the rising costs of doing business have created a perfect storm that has left the business unable to continue trading in its current form.”
This latest development follows the shuttering of its cold storage distribution centre in nearby Kintore in August last year. Should the closure of the Inverurie site go ahead, it would result in the loss of close to 200 Aberdeenshire jobs in a six-month period.
Responding to the news, Gordon and Buchan MP Harriet Cross said: “This announcement will be deeply concerning for our meat industry, both in the north-east, and across Scotland.
“The closure of Donald Russell would be devastating for the business, their staff, the supply chains and farmers who have all relied on the business for more than 50 years.
“This is the latest blow within the sector to hit Inverurie following the closure of Scotbeef last year and underlines the intolerable pressures that our food and agricultural industry is facing.”
She continued: “The likes of Donald Russell are being driven out of business by rising costs, regulatory pressures, volatility in meat prices and barriers to domestic farming that are all contributing to the loss of a key pillar of our food security.”
The UK meat industry has been witnessing a period of sharp consolidation recently, including OSI/Karnova, Sofina/Finnebrogue, Kepak/Meat Snacks Group, Red Sky Group/The Welsh Sausage Company and then Delenco Foods, Societe LDC/Gressingham Foods (all undisclosed sums), Cranswick/JamesT Blakeman (£32 million), and Sysco/Fairfax (£54 million).
This is a result of persistent cost pressures over recent years, alongside rising meat prices (+16% in 2025) which is causing difficult times for smaller producers in particular.
