The Pancake Place in Elgin closes as parent company cites sexual misconduct scandal and rat infestation at other locations as reasons behind collapse
Mounting debts compounded by a rat infestation and “negative PR” brought on by a sexual misconduct scandal have been cited among the reasons for the closure of a much-loved Elgin café.
The Pancake Place on Elgin High Street closed its doors for good after its parent company went into liquidation on June 30.
The chain, which has been an ever-present staple on high streets across Scotland since 1973, had locations in Dunfermline, Pitlochry and Dundee as well as its café in Elgin. All four are now shut.
Legal documents obtained by The Northern Scot reveal that the collapse will result in the loss of 46 jobs.
The documents also reveal the reasons behind the business’ demise.
They note that Skea Blain Ross, Pancake Place Limited’s sole director, decided that the company would be wound up on June 24.
The company had assets totalling £61,000 but debts of £273,198.
The documents read: “On the basis of these figures the company is insolvent.”
Around 50 per cent of the company’s turnover was generated by its site in Pitlochry, Café Biba.
However, after its main supervisor was convicted of sexual misconduct towards female employees at Perth Sheriff Court in May this year, the café suffered from “extremely negative PR” and a downturn in trade.
Documents note how the site was no longer trading at a profit and that “no recovery is envisaged”.
Its site in Dundee suffered problems of its own.
A rodent infestation in 2024 required a “significant sum” to be spent to deal with the problem and with the issue re-emerging recently the company concluded that it did not have the funds to address the problem again.
The issues, which have contributed to the considerable debts, have made the entire company “unviable”, according to the documents, ultimately leading to the closure of the Elgin location as well.
Each site has been closed and cleaned and all “perishable items” will be sold to “preserve the assets for benefit of creditors”.
Opus Business Advisory Group has since been appointed provisional and interim liquidators.
Paul Dounis, a licensed insolvency practitioner with the Glasgow-based firm, told The Northern Scot: “The process we're running at the moment is to work out how we maximise a recovery in the sale of the assets and also potentially assigning a lease to somebody who might be willing to take those sites on.
“Thereafter, we'll be asking creditors to submit claims with a view to making a recovery and a repayment to those creditors who may have lost some money in the liquidation of the company.”
