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.

Related Articles

Carillion CFO blew whistle over 'sloppy accounting' months before collapse

Business Recovery Carillion CFO blew whistle over 'sloppy accounting' months before collapse

3m Alia Shoaib, Reporter
Toys R Us UK and Maplin enter into administration after failing to secure buyers

Business Recovery Toys R Us UK and Maplin enter into administration after failing to secure buyers

3m Alia Shoaib, Reporter
How to avoid a Carillion collapse

Business Recovery How to avoid a Carillion collapse

4m Russell-Cooke
Carillion collapse: The week so far and industry reaction

Business Recovery Carillion collapse: The week so far and industry reaction

4m Emma Smith, Managing Editor
Kingston Smith & Partners appointed trustees in bankruptcy of ex-Newcastle United footballer

Business Recovery Kingston Smith & Partners appointed trustees in bankruptcy of ex-Newcastle United footballer

4m Emma Smith, Managing Editor
Carillion: PwC appointed as special managers – what happens now?

Business Recovery Carillion: PwC appointed as special managers – what happens now?

4m Emma Smith, Managing Editor
Investment firm acquires Avon Steel Company Limited

Business Recovery Investment firm acquires Avon Steel Company Limited

5m Emma Smith, Managing Editor
Manchester law firm enters into administration

Business Recovery Manchester law firm enters into administration

5m Emma Smith, Managing Editor