A SCOTTISH Government minister has said they are “extremely concerned” after a major parcel company in the north of Scotland announced plans to close.

Menzies Parcels told staff it would cease trading next month because of “significant losses”.

The firm, which provides courier services across the Highlands, Islands, Grampians and Argyll, has 15 depots across Scotland and employs around 270 staff.

In a letter reported by the BBC, the company said: “The business has been incurring significant losses over the last two years and, having exhausted all other options, has come to the disappointing conclusion that it is no longer sustainable in its current form."

The last day of business will be February 29, it said.

Richard Lochhead, the MSP for Moray and the Scottish Government's Minister for Small Business, Trade and Innovation, said the news would come as a "huge blow".

He said: "I am extremely concerned to hear about job losses at Menzies Parcels, a company whose vans are a familiar sight on local roads and that only opened its new depot on the outskirts of Elgin a few years ago."

Lochhead went on: “As local MSP I am particularly concerned about the impact on the company’s Moray-based employees.

“This news will undoubtedly come as a huge blow to all staff affected and I hope the relevant agencies can work at pace to ensure support is in place for those facing redundancy.”

Trade union Unite said: “Unite is actively engaging with our members across Scotland affected by Menzies Parcels’ decision to make workers redundant."