90 jobs axed at major supermarket supplier

90 staff have been made redundant at a potato processor that supplied to major supermarkets.

Beverley-based M&F went into administration on 13 March after losing a significant customer,  calling in Paul Stanley and Andrew Mackenzie of Begbies Traynor.

The £9m-turnover business was based at Plaxton Bridge Road, outside Beverley.

It was able to process more than 100,000 tonnes of potatoes a year and was also planning the development of a new £4.4m anaerobic digestion plant on a site behind the plant to save hundreds of thousands of pounds in waste disposal costs, and generate an additional £400,000 of revenue for the firm.

“The business was trading well, despite tight margins in the sector, prior to the loss of one major contract. It was clear very quickly that without the same level of revenue the business had no way to cover its costs, and unfortunately the doors had been closed on 10th March before our appointment.  Our early investigations concluded that without the company’s main customer, which was responsible for the majority of the revenue for the business, there was no alternative to keeping the business closed to prevent liabilities rising,” said Andrew MacKenzie of Begbies Traynor.

The assets of the business, which operated from leased premises, include various elements of processing machinery, several trucks and vehicles and general office equipment that will be sold by auctioneer Eddisons, which has been appointed to dispose of the assets.

“We are hopeful that there will be interested parties who may want to operate the plant again, and will acquire the site as it is ready to go and has a readily available local workforce. The potential for the waste plant, with all permissions secured, make this potentially attractive for trade buyers too,” added Mr MacKenzie.