Loftorka in Borgarnes has filed a petition for bankrupcy. The company currently employes 70 people and has been the biggest workplace in the commune. 

The newsweb Skessuhorn reports today that Loftorka Borgarnes ehf. filed a petition for bankrupcy today with the District Court of the west. A liquidator will be put in charge of the company.

'There are many concurrent reasons that have brought us to this point. A massive recession in the construction industry is the biggest reason, then the fall of the Icelandic króna which has had massive impact to the debt of the company and thirdly the business problems of our customers who have been unable to pay their bills. The volume of activities for the company has therefore totally collapsed,' says Óli Jón Gunnarsson president when talking to Skessuhorn.

Currently Loftorka has 70 employees but when they reached their peak in 2007 employees were about three hundred.

'In the last few days our bank, which is Íslandsbanki, hasn't seen a basis for continuing this business in it's current form. Therefor the employees of the company were told today that the company would close, bankrupcy would be filed and people would not be turning in for work after the weekend,' says Óli Jón. 

According to Skessuhorns sources there is will among locals that everything be attempted to revive the running of Loftorka, as the company has been the biggest operator in Borgarfjörður

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