PracticeConsultingE&Y called in at Snackhouse

E&Y called in at Snackhouse

Ernst & Young have been appointed administrators at snack foods producer Snackhouse following suspension on Friday of the company's shares on the London Stock Exchange.

The suspension, made at the request of the Lancashire company, followed ‘continued difficult trading conditions and severe cashflow problems’, according to an LSE announcement.

Shares were suspended at a value of just 8.5p, only a tenth of their value of 18 months ago, and followed two profit warnings last October and May this year.

Hunter Kelly and Trevor Birch of Ernst & Young have been appointed as joint administrative receivers with immediate effect.

Kelly said despite ‘some cashflow difficulties’, the business remained ‘an attractive proposition’. He said there were ‘a number of parties interested in the business and discussions with them would take place over the next few days.

Snackhouse, one of the UK’s largest snack food manufacturers, employs around 470 people and comprises its core brand Bensons Crisps in Kirkham, Country Harvest Natural Foods in Shropshire and K Snack Foods in London.

In September, the board of Snackhouse announced it was conducting a full strategic review of each of its businesses and confirmed that it was in discussion with its bankers Royal Bank of Scotland after trading conditions worsened.

In the six months to May this year, the company recorded a pre-tax loss of Pounds 2m after making a profit of Pounds 3.5m in 1999.

Links

Snackhouse

Related Articles

5 tips for SMEs to protect cash flow

Accounting Software 5 tips for SMEs to protect cash flow

5m Alia Shoaib, Reporter
Tyrie on Finance Bill 2017: ‘Making Tax Policy Better’

Consulting Tyrie on Finance Bill 2017: ‘Making Tax Policy Better’

11m Stephanie Wix, Writer
Managing partner Q&A - the year ahead: Richard Toone, CVR Global

Accounting Firms Managing partner Q&A - the year ahead: Richard Toone, CVR Global

12m Kevin Reed, Writer
Deloitte 'self-imposes exile' on government contracts to defuse PM row

Accounting Firms Deloitte 'self-imposes exile' on government contracts to defuse PM row

12m Kevin Reed, Writer
Managing partner Q&A - the year ahead: Julie Adams, Menzies

Accounting Firms Managing partner Q&A - the year ahead: Julie Adams, Menzies

12m Kevin Reed, Writer
Friday Afternoon Live: Deloitte's tech thing; PAC wants HMRC 'contingencies'; and Sports Direct

Business Regulation Friday Afternoon Live: Deloitte's tech thing; PAC wants HMRC 'contingencies'; and Sports Direct

1y Kevin Reed, Writer
Friday Afternoon Live: HMRC complaints rise; Deloitte scoops big audits; and corporate reporting woes

Audit Friday Afternoon Live: HMRC complaints rise; Deloitte scoops big audits; and corporate reporting woes

1y Kevin Reed, Writer
New head of equity capital markets for KPMG

Accounting Firms New head of equity capital markets for KPMG

1y Stephanie Wix, Writer