Beverley-based M&F Ltd has gone into receivership following the loss of a major contract. The company which supplied around 100,000 tonnes a year of peeled, chipped and sliced potatoes and other root vegetables to major supermarket chains, had a turnover of £9 million.
Andrew MacKenzie of administrators Begbies Traynor said that the business had been trading well, despite tight margins in the sector, prior to the loss of one major contract. However, it had become clear very quickly that without the same level of revenue, the business had no way to cover its costs.
“Our early investigations concluded that without the company’s main customer, which was responsible for the majority of the revenue for the business, there was no alternative to keeping the business closed to prevent liabilities rising.”
Begbies Traynor are looking to raise money for creditors by selling off assets. The business was operating from leased premises, so the processing machinery, various commercial vehicles and general office equipment will be sold by auction. The staff of almost 100 has been made redundant.
The company was planning the development of a new £4.4 million anaerobic digestion plant on a site behind the plant to save large waste disposal costs and generate an addition £400,000 of revenue. Andrew MacKenzie said: “We’re hopeful that there will be interested parties who may want to operate the plant again and will acquire the site as it’s ready to go and has a readily available workforce. The potential for the waste plant, with all permissions secured, make this potentially attractive for trade buyers too”.
For support or advice contact Andrew MacKenzie https://www.begbies-traynorgroup.com/our-people/andrew-mackenzie.