KPMG ADMINISTRATORS have arranged a pre-pack sale of abattoir and food processing business Ensors Gloucestershire.
Will Wright and Mark Orton were appointed joint administrators and immediately sold the business to former rival and family-run Northern Irish company Foyle Food Group Limited.
The sale of the business and assets included the 80,000sq ft factory and the transfer of 136 employees.
Wright, restructuring partner at KPMG, said: “After suffering cashflow problems due to the loss of a significant contract and investment in an acquisition that failed to deliver the anticipated benefits, this long established family business was unable to continue trading and a solvent sale was not possible due to the levels of debt in the business.
“The sale of the business via a pre-pack has enabled the continued employment of all 136 staff and will mean work at the abattoir and processing plant will continue under new ownership.”
New research suggests that meat processors are ‘being squeezed’ with nearly a quarter of the UK’s largest meat companies needing an urgent survival plan, according to analysts Plimsoll, Farmers Weekly reports.
A pre-pack administration is where the sale of a business is marketed and organised prior to it entering an insolvency process. The whole or part of the business is sold immediately on appointment of administrators.
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