Partner Article

Amble food specialists saved

A specialist food manufacturer has been saved from going out of business after a buy-out deal, protecting the jobs of many of its 190 employees.

A consortium comprising part of the existing management team at Cheviot Foods in Amble, together with private investor backing, has taken over the firm, which is now to be known as Northumberland Foods Limited.

Northumberland County Council, Alnwick District Council and One North East worked closely with the new management team and administrators Vantis to help secure the buy-out.

When it became clear that bidders were unlikely to be able to meet the administrator’s initial deadline of 23 January, Northumberland County Council provided financial backing of £45,000 to allow the factory to remain in production for a further week, allowing the deal to be completed.

One North East has offered the new owners a £440,000 investment from its Rural Development Programme for England pot to help the new management team buy assets and also help support the local supply chain into the company.

Northumberland Foods Managing Director Peter Kirkham said: “This deal will safeguard the vast majority of jobs.

“It gives us the headroom to move forward. The first thing is to consolidate the business and we are encouraged that our customers have contacted us to talk about developing new product ideas - broadening our product base. We are determined to keep this a local business through the supply lines that we use with the produce that we source.”

Ian Williams, One North East Director of Business and Industry, said: “This buy-out is excellent news for the workers and their families and the whole of Amble. All partners involved worked hard to secure this deal. We look forward to the new company moving on from a position of strength and are encouraged by the new management team’s plans for future growth.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .