Administrators seek buyer for Carmarthenshire ice cream manufacturer
Wed, 22 Mar 2023 | ADMINISTRATION
Administrators from Grant Thornton UK LLP are seeking a buyer for Carmarthenshire-based ice cream manufacturer Frank’s Ice Cream Ltd. The business fell into administration after being “severely impacted” by surging costs for energy and raw materials.
Despite the firm’s struggles, joint administrators Richard Lewis and Alistair Wardell, who were appointed on Friday March 17 2023, say they hope a positive outcome can be achieved, with the business having already generated some interest.
The company is headquartered at a site in Ammanford, where it runs both its manufacturing operations and an ice cream parlour. The firm’s most recent accounts at Companies House cover the year ending December 31 2020. At that time, its fixed assets were valued at £1.03 million and current assets at £1.65 million. Net assets amounted to £1.076 million.
A spokesperson for the administrators said: "Richard Lewis and Alistair Wardell were appointed joint administrators of Frank's Ice Cream Ltd on Friday, 17 March 2023. The company, based in Ammanford, Carmarthenshire, operates an ice cream manufacturing business and an ice cream parlour on the same site and employs 38 people.”
"The manufacturing business had been loss making for some time having been severely impacted by the surge in energy costs over the last 12 months and also a significant increase in raw material costs. This, combined with an investment in the ice cream parlour put working capital under pressure and left the company unable to fulfil orders."
"There is already some interest in the business and we are hopeful that a positive outcome can be achieved."
Founded in Wales in 1922, Frank's has grown to become a major ice cream manufacturer, with its products stocked by supermarkets including Tesco, Waitrose, Asda and Morrisons. The company is also a national supplier to the NHS and, in 2019, began exporting to the Middle East.
The company's products range from traditional dairy ice creams, smoothies and frozen yoghurts, to vegan ice creams and its "dialicious" range for people with diabetes.
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