SCOTTISH jewellery chain Ortak has become the latest high-street name to go into administration as tough economic times continue to hit consumers' pockets.

More than 150 jobs at the Orkney-based jeweller's stores and factory are at risk after it announced the appointment of financial services company BDO as its administrator, saying it needs space to seek a way out of financial difficulties.

The company said the rising costs of materials and the recession had put it under pressure and administration had been the last step after it failed to find a solution.

In a statement, Ortak said: "The board regrets to announce that after an exhaustive review of the business we feel unable to continue to trade outside of insolvency protection and in the circumstances has appointed BDO as administrators to provide a breathing space in order to explore a sale of the business as a going concern.

"The current business model has come under pressure over the past few years as the recession has impacted on the high street and the cost of raw materials has increased significantly."

The step represents a dark day for managing director Alistair Gray, whose father Malcolm founded the chain in Kirkwall in 1967. Three years ago, Mr Gray was predicting a glittering future for the family-run firm.

The company expanded in 2010, investing £130,000 in a new outlet in Stirling and £200,000 in relocating its Glasgow store to the St Enoch Centre.

It also successfully trimmed £580,000 off its costs through a pay freeze and other measures. The amount of precious metal in its products was cut in an attempt to keep costs down, with Mr Gray saying its rings, bracelets and necklaces would be "lighter" in future.

But those measures have failed and a buyer is sought. The chain has 13 retail shops in Scotland as well as branches in Sheffield and Newcastle.

In 2011, its operating profits slipped to £214,000, compared with £575,000 the year before, while last year it reported a loss of £77,336.

The recession has seen a cull of big names on the high street, with Ortak joining Comet, JJB Sports, HMV, Blockbuster and Jessops on the list of retailers that have suffered financial meltdown.