A family-run department store with outlets across Scotland is to close with the loss of 130 jobs.

McEwens of Perth, which has shops in Perth, Ballater and Oban, opened almost 150 years ago and was the final remaining independent department store in Scotland.

It is understood the company, established in 1868, will go into administration at 1pm on Thursday.

It is owned by John and Georgina Bullough, who took the business on from Mr Bullough's parents.

McEwens has a main shop in Perth plus an additional boutique. A notice was posted on the Perth shop window on Thursday notifying customers that the outlet would be closed.

In a statement the couple said they were announcing the closure "with great sadness" after battling "unprecedented challenges".

They said: "These include the immediate credit crunch, a dramatic change in shopping habits, the rise of the internet, the growth of out of town shopping, plus low consumer confidence linked to political and economic uncertainty.

"In 2010 McEwens of Perth was placed into GRG, the 'recoveries' arm of the Royal Bank of Scotland.

"Despite these difficulties we have worked hard with little to no working capital but with fantastic and loyal staff, to make McEwens the very best it could be. Sadly this has not delivered the increase in trade that was necessary to keep the business solvent.

"We have left no stone unturned trying to find a partner or a purchaser to take McEwens forward. Our exhaustive searches led to very positive discussions with national retailers, property investors and corporate finance providers, but sadly none of these negotiations resulted in a solution.

"We are very grateful for the efforts and advice we received and would like to thank everyone who showed their support, including those loyal customers that enjoyed McEwens over the years. They share our affection and commitment to Perth city and the vibrant future it deserves.

"Our thoughts at this difficult time are with the 130 people employed within McEwens in the stores in Ballater, Oban and Perth who all face redundancy. We hope that they find new jobs quickly and are grateful that Perth and Kinross Council has a team stood by to assist with this."

Councillor Ian Miller, leader of Perth and Kinross Council, said: "The closure of McEwens is a significant loss for Perth and the wider region, and our thoughts are with the owners and employees during what I can only imagine is a devastating time.

"McEwens is a Perth institution dating back over a hundred years and has been a unique feature on the city’s landscape since it first opened its doors. As the only independent department store in Scotland it stood the test of time and for many was the reason for a visit to the city.

"What this loss will mean to the city will become apparent over time but for now, the council’s priority is to offer whatever support we can to the employees affected by this very sad turn of events."

It has been revealed that the council worked to find an alternative to closing with the owners, even looking into the possibility of stepping in and purchasing the properties.

This option was prevented due to time and legal constraints.

A council spokesman added: "The council has exhaustively examined all of the available options and means of support regarding the future of McEwens, and it is with regret that we are not able to step in and purchase the properties.

"This decision has not been taken lightly and unfortunately within the time frame available to act it is not financially or legally possible for us to do so.

"Where we could take action we did by setting aside the payment plan for the 2015/16 business rates which are past due for the premises.

"We will work with the employees who have been affected and make available our dedicated resources to help them find suitable employment as quickly as possible.

"Looking ahead, the council will work together with its partners to review the City Plan following this announcement with a view to exploring how we can support additional employment opportunities within the city centre."

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