More than 80 jobs are at risk after laundry firm Fishers announced plans to close its Perth base.
The company said it had been struggling with the impact of the Covid-19 crisis, because the firm mainly relies on the hospitality and tourism industries.
It said the Perth base is no longer viable and 84 members of staff have been told they are at risk of redundancy.
A spokesman for Fishers said: “We confirm that Fishers has this week announced that, very regrettably, it plans to close its Perth laundry in Inveralmond Industrial Estate in the city and has initiated a 30-day consultation with the 84 staff at the plant, who have been informed that they are at risk of redundancy.
“The Perth laundry is currently mothballed following the introduction of the coronavirus lockdown.
“Fishers is particularly focused on the hospitality sector, which has been significantly affected by the coronavirus lockdown, with the impact likely to be felt for many months.”
Fishers was also unsuccessful in retaining its largest contract with Whitbread, which operates Premier Inn and Hub hotels, the spokesman added.
“Consequently, Fishers has regrettably decided that we must close our Perth laundry and service our customer base from our other plants in order to protect our business and the remaining jobs in the company during the uncertain times ahead,” he said.
“We very much regret having to take this action and we recognise the effects this will have on our Perth team, many of whom have worked for Fishers for a number of years.
“However, we believe we have no choice, given the level of uncertainty we face.”
Pete Wishart, MP for Perth and North Perthshire, said his focus would be on ensuring support would be available to staff.
He said: “This is hugely disappointing news and I am concerned about the 84 staff who will be facing a very uncertain future at this troubling time.
“Most of these employees will be based in my constituency and it is imperative that support is in place to help them secure new jobs, should the plant be closed completely.”