Administrators seeking buyer as fruit and juice maker collapses
Thu, 19 Jan 2023 | ADMINISTRATION
Administrators from Grant Thornton are seeking offers for the business and assets of fruit and juice maker Orchard House Foods, following the company’s collapse. Grant Thornton’s Sarah O’Toole, Jon Roden and Kevin Coates were appointed as joint administrators to the firm on January 18 2023.
Last week, the company announced its intention to appoint administrators, saying in a statement to trade publication Just Food: “We have had to take this action given the extremely challenging economic and trading conditions that have badly hit Orchard House Foods. The economic conditions have meant increased input prices and overheads, and this has significantly increased pressure on our cash position.”
The company operated from sites in Corby, Northamptonshire and Gateshead, Tyne and Wear. The firm’s Gateshead site closed in 2022, impacting around 430 staff. It has now been confirmed that the company’s five remaining factories in Corby, which have operated for close to 40 years and employ more than 500 permanent staff, have closed this week.
Discussing the company’s struggles, joint administrator and partner at Grant Thornton UK LLP Sarah O’Toole said: “Economic conditions have proved incredibly challenging for many businesses operating in this sector. Despite management’s best efforts to find a long-term solution for the business, challenging trading conditions have meant the difficult decision has been taken to appoint administrators.”
O’Toole added: "The majority of the remaining employees have been made redundant and the administrators will be seeking offers for the business and assets of the company."
In Orchard House Foods’ most recent accounts, for the year ending June 30 2021, the company’s fixed assets were valued at £17.1 million and current assets at £34.7 million, while net assets amounted to close to £21 million.
During that year, the company’s turnover was £113.49 million, down from £120.7 million a year earlier, while its losses widened from £3.69 million in 2020 to £4.97 million, with firm’s directors citing the negative impact of COVID-19 and its associated lockdowns on the foodservice and food-on-the-go industries.
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