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Country Chef saved from administration
Two food firms that closed in early March have been bought out of administration, with the new owner understood to be re-employing around 80 former staff in a bid to restart production as quickly as possible.
Based in Scunthorpe, Country Chef employed around 80 staff, and produced processed potato products for sale to retail and trade buyers, as well as sous vide dishes; it operated from leasehold premises in the town.
Meanwhile, around 11 staff at Denby Dale Pies made frozen pies from a leasehold site in Denby Dale, Yorkshire (a town famous for its giant meat and potato pies), and due to ownership by common shareholders, the administration of both firms was dealt with by accountant and business advisor PKF.
Jon Newell, joint administrator, PKF, told Food Manufacture that newly formed company Abbeydale Foods has acquired the assets at both sites.
Newell said he believed the firm would re-employ the vast majority of staff in a bid to get production going again as quickly as possible, with all initially made redundant when the firms closed their doors in early March and PKF took over.
Although PKF had marketed the firms as separate entities, Newell said, he and his fellow administrator believed that the Abbeydale bid - a joint package for both companies - was the best offer on the table; he added the former shareholders had no connection with the newly formed company.
Newell said that Country Chef and Denby Dale had cash-flow difficulties: "They ran out of money and were not paying creditors, which led to the accumulation of a large historic debt," which included "massive arrears to the Inland Revenue [IR]".
He added that, when a firm employs around 80 staff paid around £200 per week, a failure to make tax deductions via PAYE (pay as you earn) meant the accumulation of a £6,000 per week debt to the IR, where such debts can stack-up quickly.
Food Manufacture was unable to reach anyone at Abbeydale Foods for comment.
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