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

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.

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