BusinessBusiness RecoveryGate Gourmet considers administration

Gate Gourmet considers administration

Troubled catering company looks to administration route as a solution to current deadlock

Gate Gourmet, BA’s embattled catering supplier, is considering applying for
bankruptcy as speculation mounts the company is on the verge of appointing Kroll
as its administrator.

British Airways’ in-flight catering supplier is locked in a contractual
battle with the UK airline over new terms. Simultaneously, sacked Gate Gourmet
workers are on strike at Heathrow protesting about the company’s treatment of
staff.

Gate Gourmet, the British arm of a US-based parent company, faces going into
administration tomorrow if it cannot reach an agreement with BA on improved
terms for a new supply contract. The company is BA’s sole catering supplier at
Heathrow.

A spokesman for BA said the airline had put forward a new contract to Gate
Gourmet and it was ‘up to them to sign on the dotted line’.

Kroll was unable to comment.

The Transport and General Workers Union is due to hold a rally in Southall at
2pm today calling on Gate Gourmet, British Airways and the government to
reinstate the sacked staff.

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