The Great Eastern Mussel Farms Inc. of Tenants Harbor announced this morning it is immediately shutting down the company and laying off its 40 full-time employees.

The company cited increased regulatory challenges, competition from Canadian mussel growers and rising energy costs for the demise of the 30-year-old company. Founded in 1978 by Endicott "Chip" Davison, the company was a pioneer in developing the modern mussel industry in North America.

"Before Great Eastern, the mussel market was driven by individual and independent diggers and fishermen along the coast. Chip was able to organize, educate and create products that basically established mussels as an entirely new category of healthful seafood from a renewable resource at retail seafood counters and on restaurant menus nationwide," company General Manager Michael E. Hallundbaek said in the company's written announcement.