The closure of Kintyre Reuse Hub, announced this month, comes a year after a controversial decision by Argyll and Bute councillors not to extend KRL's kerbside collection contract, which it had fulfilled since 2006.
A spokesperson for KRL's board of directors told the Courier: 'With the headwinds currently impacting the retail sector, coupled with the recent financial impact from the loss of the kerbside recycling contract, the shop does not have enough income to cover its general overheads and is impacting the financial health of the rest of the organisation.
'Since October last year, KRL has carried out a review of operations in consultation with staff and has been applying for grant funds to help sustain the operation but unfortunately neither has been successful.'
While KRL hopes to provide other work for as many staff members as possible – many of whom face barriers to working – it is having to consider making redundancies.
Despite this setback, KRL has lots of plans for its future.
As well as retaining its textile bank collections, security shredding collection service and bike repair service, KRL will be launching an e-bike hire service, in time for summer.
In the next few months, the organisation plans to move to a different site in Campbeltown, from where the bike centre and textiles will operate.
KRL is keen to appoint new volunteer directors to its board, to help it rebuild.
'This is a new chapter for us and there are green shoots of recovery so if anyone can help, please can they get in touch with Jonathon McCreadie by emailing Jonathon.Mccreadie@kintyrerecycling.org,' added the spokesperson.
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