£150m Bomfords business enters administration

Food produce business enters adminstration after cost over-runs: adminstrators hopeful of sale

Written by Kevin Reed

Accountancy Age, 27 Jun 2007

A Birmingham-based sweet potato and spring onion producer employing 2,100 people has entered into administration.

Bomfords Group, which has a turnover of £150m, has appointed administrators from Deloitte to attempt to sell the business.

The group's collapse followed 'significant cost over-runs' following the construction of a new pack house and admin building at its Atherstone facility

'The group has a strong market position, with a UK market share of approximately 25%-55% across its various principal product categories. It is profitable and has an enviable customer base,' said Deloitte partner and joint administrator Dominic Wong.

'Unfortunately, the capital expenditure overrun on the Atherstone facility was significant and could not be met from cashflows. However the facility is now complete and operational and the recently established Bomfords Prepared business is also now profitable.'

A large number of buyers have enquired about the group, and it will trade as normal until a sale or rescue of the company is undertaken.