Tesco supplier enters administration
Tesco maintenance supplier M1 goes bust, but administrators hopeful jobs will be saved
Begbies Traynor is extremely ‘hopeful’ that the jobs of 825 workers at Tesco
supplier Maintenance One will be saved after the company went into
administration.
Vivian Bairstow, Begbies partner and administrator at M1, said that no
redundancies were planned at the company and he was confident that a buyer for
the business could be found in the next few weeks.
‘We are extremely hopeful that we can save all the jobs of the workforce and
rescue this very good business, which plays an important part in the smooth
running of Tesco’s UK store portfolio,’ said Bairstow.
He praised Tesco for helping Begbies fund the administration, adding,
however, that the supermarket giant had been a ‘tough negotiator’ with M1 in the
past – which only has Tesco as a client.
Bairstow said the main reason behind M1’s cashflow problems were associated
businesses in which the company held shares, into which M1 had piled funds.