Pellet firm falls into administration after failing to break into new market

A supplier of wood-based pellets has fallen into administration after failing to break into the biomass sector.

Andy Pear and Milan Vuceljic of Moorfields Advisory were appointed joint administrators of 3F Pellets on February 22.

3F Pellets, based in Saxilby, Lincolnshire, was established in 2015 and is a manufacturer and supplier of wood-based pellet products such as cat litter, horse bedding and biomass heating pellets.

Recently the company had invested heavily in machinery and equipment with a view to further expanding into the Biomass industry, but had unfortunately struggled to break into the market leading to financial difficulties.

Moorfields are now marketing the business and its assets for sale.

3F Pellets’ latest accounts, for 2021, show the firm had assets of almost £7m. The firm employed 16 people at the time.

Pear, Partner at Moorfields, said: “3F Pellets has a good customer base and the right location and equipment but similar to many companies has struggled with new market entry.

“We hope to find a suitable purchaser for the business and assets who will be able to expand the business as intended.”