discovery of an alleged theft ring at one of the Island's largest food distributors.

The Director of Public Prosecutions office decided not to proceed with the case, which resulted in around $200,000 of goods disappearing from Butterfield and Vallis' warehouses.

Yesterday, Butterfield and Vallis president Jim Butterfield expressed his disappointment at the outcome of the investigation, which led to a massive overhaul of security and hiring at the firm.

And he said the result was bad for Bermuda, claiming that employee theft was "rampant'' across the Island, and could be pushing some companies to the wall.

"I am very disappointed. The loss is bitter because there is no recourse,'' he said.

"We have lost $200,000 over the last couple of years. My message is invest in cameras, they are a necessary part of business.

"It is rampant in all trades, some businesses build in the shrinkage factor.

This company is strong enough and big enough to weather through but smaller companies could go out of business.'' Last July, ten people were sacked by Butterfield and Vallis after the incidents came to light.

The thefts involved food and household goods which left the warehouse but computer records did not show any corresponding sales. The scam came to a head when large amounts of goods went missing.

Last night, a Police spokesman confirmed that the case was now closed.

Anger as theft case closed "The case was investigated thoroughly, however, for various reasons it was decided not to proceed with the prosecution,'' the spokesman said.

Since the incident came to light, Butterfield and Vallis have invested huge sums in security procedures in a bid to keep a close eye on stock movements.

Close circuit cameras systems, a global positioning satellite system in all vans and extra warehouse staff have cost the company over $100,000.

Mr. Butterfield said they had also put in place more thorough hiring procedures as a result of the incidents.

"We are going to put it behind us and get on with our lives,'' he said. "We have got 200 staff, they are wonderful people.''