Kent-based produce supplier A Gomez Ltd has ceased trading, putting more than 400 people out of work just weeks before Christmas.
According to local news sources, employees at the Canterbury business which supplied salad and fruit crops have been left “shell-shocked” at the “atrocious timing” after being told on 8 December not to come in to work on Saturday. According to the company’s website, it farmed more than 3,250 ha of its own crops in Spain, as well as small areas in the Netherlands and the UK.
A letter to staff from managing director Raquel Hernandez, said, ‘It is with regret that I have to inform you that, with effect from Friday, December 8, A Gomez Limited will cease trading.
‘As most of you are aware, the business has been encountering many financial challenges following the loss of its business since undertaking a gradual wind-down of its operations over recent weeks.
‘Unfortunately, the financial pressures on the business have meant that the shareholders and directors of the company have had to take the reluctant decision to cease operations with immediate effect.’
A story suggesting the company was entering administration appeared on one industry news website earlier this month but was then removed.
Ms Hernandez said the company had filed a notice of intention to appoint administrators.
The Fresh Produce Journal reported that Gomez’s most recent accounts, for the year to 30 September 2022, showed a significant reduction in turnover during the period, from £167m to £133.8m. At the same time, the company suffered a pre-tax loss of £415,914 in 2021/22, compared to a pre-tax profit of £1.1m in 2020/21.
Hernandez wrote in the financial report that the 19.9 per cent reduction in sales was “due to lost contracts during a business reset carried out by our customers and the removal of some non-profit-generating depots.”