Sales at Fife-based commercial laundry firm Fishers fell by more than £20 million as it felt the impact of the Covid-19 pandemic.
Fishers closed its Perth depot last year, resulting in the loss of 84 jobs.
That was despite employees at the plant and drivers offering to job share, or cut their hours if it meant saving their jobs.
Group managing director Michael Jones said reducing the headcount was necessary to protect the firm from the impact of the pandemic.
Fishers saw revenue drop to £17.4m for the year ending December 31 2020.
That a drop of £21.4m down from its 2019 level of £39m.
The accounts show a reduction in the firm’s average monthly headcount from 770 to 556 staff.
The job cuts took the wage bill to just over £11m for the year, compared to £14.8m the year previous.
Losses as trading ‘significantly reduced’
The Cupar-headquartered business reported pre-tax losses of £3.6m for the period.
That is in contrast to a pre-tax profit of £3.7m in 2019.
In his report, Mr Jones said trading had been “significantly reduced as a direct impact” of the virus.
Reflecting on Fishers’ sales fall, he added: “Since mid-March, we saw significantly reduced hotel occupancy rates compared to historical levels.
“Demand for both business and leisure travel declined considerably.”
The firm’s revenues during the period between April and June 2020 fell by about 90% from the year before.
Various levels of restrictions further impacted the business and resulted in “fractured trading,” Mr Jones added.
He said the full impact of the business will depend on future developments.
Results reflect impact of pandemic on Fishers
Fishers, founded in Aberfeldy in 1900, was sold to Canadian giant K-Bro in a £35m deal in 2017.
Toronto-Stock Exchange-listed K-Bro Linen Inc is the largest provider of laundry and linen services in Canada,
A Fishers spokesperson said: “The results for the year reflect the financial impact the COVID-19 pandemic had on Fishers’ 2020 performance.
“The Fishers team has worked hard to support our customers both during the Covid lockdowns and since the re-opening of the hospitality sector.
“Our parent company, K-Bro Linen Systems Inc., continues to report a consolidated financial position on a quarterly basis.”