THREE staff have lost their jobs after the collapse of a 22-year-old specialist food company.

Award-winning firm, Lucy’s of Ambleside, was forced into liquidation following an irreversible trading slump.

Director Lucy Nicholson, 52, said the past two months had marked a very sad time for the business, which made its name supplying local foods and niche ingredients.

“When we looked at our trade at the start of the year, we realised the grocery side of the business wasn’t making enough to continue,” she said. “This has been a horrendous week. I feel like there’s been a death in the family.

“We’ve worked extremely hard to try to preserve as many jobs as possible.”

The business director blamed a mixture of factors for the company’s failure, including a weak economic climate, an increase in online shopping, petrol costs, reduced visitor numbers and pressure from the financial institutions.

Her company traded in several parts.

Niche food retailer Lucy’s Specialist Grocers has been in Ambleside since 1989 but will now close.

Lucy’s on a plate Café and Restaurant and Lucy4 Wine Bar & Bistro have been sold and will continue trading from their Ambleside base, under a new name, The Taste District Ltd.

Mrs Nicholson said she would continue to run her cookery school LucyCooks and Lucy’s Catering, but would have no part in the future of The Taste District.

She said: “I’m a great optimist and I’ve got other businesses to run.

"I know I will have a passing glance at the places I started my business in the future.”