Malcolmson & Co has announced it will close its doors in the new year.
The bakery business, based in Shetland, which has been in operation for the last 160 years, said competition from a local Tesco supermarket and a downturn in business had forced it to cease trading and make around 15 jobs redundant.
An unknown buyer has put in an offer for its bakery site, while the future of its retail outlet on Commercial Road has yet to be decided.
Steven Leask, owner of Malcolmson & Co told the Shetland News: “Before Tesco was here we were doing very well. Tesco has certainly taken a lot of business from the small businesses that we supply and you can certainly see the downturn."