Frozen food factory takeover fails
THE sale of a Northumberland frozen food factory which had gone into administration has fallen though.
Northumberland Foods Limited, based in Amble, ceased production in August 2010 after suffering cash flow problems.
Newcastle-based Longbenton Foods exchanged contracts to take over the site and restarted manufacturing, taking on 70 of the 250 former staff.
However, it was unable to raise the necessary funds to complete the transfer so the contract was rescinded.
Longbenton Foods had paid a non-refundable deposit when contracts were exchanged on 22 October 2010.
The balance was due on 22 November, but the company was unable to complete, so administrators Begbies Traynor had granted an extension for a further month.
When funds were not forthcoming a notice to complete was served, which expired on 20 January.
Begbies Traynor said in a statement: “The administrators owe a duty to all creditors to maximise realisations and have, therefore, decided that, given Longbenton Food’s continued inability to raise the necessary funding to complete the transaction, it is appropriate to rescind the contract.
“The intention is now to press ahead with the marketing and sale of the business, including its plant and machinery and the property situated at the Coquet Industrial Estate, Amble.”
This was posted in Bdaily's Members' News section by Ruth Mitchell .