Partner Article

Buyer sought for Traidcraft as UK fair trade pioneer is placed into administration

On 31 January 2023 Andrew Little and Gillian Sayburn of Begbies Traynor in Newcastle upon Tyne were appointed as joint administrators of Traidcraft plc.

With its headquarters in Gateshead, the Christian organisation has spent four decades advocating the importance of organic farming, sustainability and transparency to the lives of growers and artisans around the world. Traidcraft offered a huge range of ethical and fairtrade foods, beverages, household cleaning and rubber products, as well as fairtrade crafts and clothing, via a large, independent, extended network of ‘fairtraders’ and through its website.

The business had been loss-making for a number of years as it has faced increased competition from a growing number of mainstream shops stocking fairtrade products. Its problems were exacerbated by Covid lockdowns as well as by the pre-Christmas postal strikes which impacted online orders. Having borrowed money to fund the working capital ahead of the Christmas selling season, the business proved unable to repay these loans, and Begbies Traynor was appointed to place it into administration.

Traicraft plc’s assets, which include a large circa 100,000sq ft warehouse and offices in Team Valley plus a wide range of fairtrade stock, are being marketed by Eddisons.

The business has ceased trading and all 40 employees have been made redundant.

Andrew Little, joint administrator and partner at Begbies Traynor in Newcastle, said: “Traidcraft really was one of the founders of the world fairtrade movement and it’s sad to see its demise although there’s no doubt that over the last 40 years, it has helped drive consumer demand for ethically-sourced products.

“We are currently working closely with Eddisons to market the business in order to provide the best return for creditors and we have already received interest from potential purchasers.”

For further information about the sale of Traidcraft plc, please contact Andrew Little on 0191 269 9820.

This was posted in Bdaily's Members' News section by Emma Kilmurray .