Meals-on-wheels group failed with £2m debts

A LEADING meals-on-wheels supplier collapsed with debts of nearly £2m according to new documents.

Greater Manchester-based Flowfood and its sister companies Economy Kitchens (Morley) and Lawton Bros (Sales) failed in November after grappling with rising overheads and falling margins.

A buyer was found for the group days before it went into administration, but could not arrange finance to see the deal through. All 130 staff were laid off.

According to a creditors’ report the businesses, which prepared and delivered ready-meals for local authorities, failed owing their lender, Royal Bank of Scotland, £880,000 and unsecured creditors £1m.

Joint administrators Philip Duffy and Steven Muncaster of the insolvency practice MCR do not expect unsecured creditors to receive a dividend.

The group, which was run by the Lawton family, operated from premises in Ashton and Leeds. Agents at Sanderson Weatherall have been instructed to market the freehold properties.