£150m Bomfords business enters administration
Food produce business enters adminstration after cost over-runs: adminstrators hopeful of sale
A Birmingham-based sweet potato and spring onion producer employing 2,100
people has entered into administration.
Bomfords Group, which has a turnover of £150m, has appointed administrators
from Deloitte to attempt to sell the business.
The group’s collapse followed ‘significant cost over-runs’ following the
construction of a new pack house and admin building at its Atherstone facility
‘The group has a strong market position, with a UK market share of
approximately 25%-55% across its various principal product categories. It is
profitable and has an enviable customer base,’ said Deloitte partner and joint
administrator Dominic Wong.
‘Unfortunately, the capital expenditure overrun on the Atherstone facility
was significant and could not be met from cashflows. However the facility is now
complete and operational and the recently established Bomfords Prepared business
is also now profitable.’
A large number of buyers have enquired about the group, and it will trade as
normal until a sale or rescue of the company is undertaken.
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