Profits melt away at ice-cream business
Ernst & Young were appointed administrators of De Roma Ice Cream on Friday, after a record summer failed to help the company weather difficult times.
The Lancashire-based firm, which celebrated its eightieth anniversary last year, is one of the UK’s major suppliers of ice-cream and frozen desserts with a turnover of £21m. Products include Vimto and Sunkist lollies.
Simon Allport and Garry Wilson were appointed as joint administrators and have made around a quarter of staff redundant.
Simon Allport, corporate restructuring partner with Ernst & Young, said: ‘Despite the warm summer, De Roma have encountered difficult trading conditions as a result of working capital constraints.’
He said 55 redundancies had been made out of a staff of just over 200, but that the company would continue to trade while a review was carried out. ‘We are currently investigating expressions of interest from a number of parties with a view to securing a refinancing of the business or a sale as a going concern,’ he added.