PwC sells off Lubborn Cheese after Dairy Farmers collapse

PricewaterhouseCoopers has sold off Lubborn Cheese Limited, the only part of the Dairy Farm stable which was kept out of receivership, to Lactellis McLelland.

Lubborn was part of the Dairy Farmers of Britain co-operative, but was not placed into the hands of PricewaterhouseCoopers receivers on 3 June along with the rest of the milk supply giant.

This allowed the PwC corporate finance team to continue with the sale process for that part of the business.

David Kelly, receiver and manager of DFB said: 'We are pleased to secure such a strong buyer for the Lubborn Creamery, which will ensure the continued employment of workers at the site and the opportunity for DFB farmers to continue supplying the plant they have helped build up.'

The Lubborn Creamery, in Cricket St Thomas, south Somerset, is a market leader in the UK soft cheese market, with its unique range of quality Somerset Brie, Somerset Camembert and Capricorn goat’s cheese ranges. Lactalis McLelland produces some of the UK’s best known cheese brands including the award winning Seriously® cheddars, Orkney, Galloway and McLelland Mature cheeses.

'Lactalis McLelland were an obvious acquirer of the Lubborn business and emerged as the most credible buyer following a carefully managed process run by our corporate finance team over a number of months. We hope they continue to build on the success of the Lubborn business in the future,' added Kelly.

Lubborn was kept out of the receivership process which hit the DFB co-operative last week. DFB employs 2,200 staff at sites in the South West, the Midlands and the North East and has 1,800 farmer members supplying over 1bn litres to the food and drink industry, comprising 10% of UK milk production.

Following other 'significant losses', DFB was dropped by the Co-Operative Supermarket on a key supply contract, forcing DFB's directors to ask bankers HSBC for the appointment of receivers.