The closure, one of several over the past few years, underscores the crisis faced by Iceland's coldwater prawn sector.
"The operation of prawn processing plants has been very difficult over the past few years and this decision has probably come as no surprise to those who have followed the situation in the news," the company said.
Coldwater prawn companies in Iceland have been faced with a raw material shortage that has forced them to import product to keep plants operational. Making matters worse, a strengthening Icelandic krona has made products even less competitive.
Currently,
