330 jobs lost as dairy firm forced to call in the administrators

A dairy firm with operations in Chester and North Wales which employed 330 staff has gone into administration.

Last week farmers were told Tomlinson’s Dairies in Wrexham was no longer able to process their milk and to find a different supplier.

And this week PwC confirmed that it had been appointed administrators of the firm.

Mike Denny and Peter Dickens have been appointed joint administrators of the dairy business.

Tomlinsons has issued a statement following the move.

It said: “The family shareholders, directors and management of Tomlinson’s are devastated by the administration and sincerely regret its impact on their customers, suppliers, farmers and employees.

“Key customers, the company and its stakeholders had been in urgent communication over a package of measures to further support the business over recent weeks given the deterioration in Tomlinson’s financial position.

“Strenuous efforts have been made to try and find a solution but on Friday evening the position proved untenable.

“Consequently the directors had no alternative but to make urgent plans to both cease milk processing and file for administration.

“The decision, taken over the weekend, was time critical to stop milk being delivered that could not be paid for once the prospects of a rescue were known.”

PWC said the dairy had “suffered an accumulation of significant operating losses over recent years” made worse by increasing energy costs and a depressed cream price.

A spokesperson for the administrators said: “Despite some improvement in its trading performance of late, Tomlinsons had suffered an accumulation of significant operating losses over recent years which were exacerbated by industry wide issues such as energy costs and a depressed cream price.

“The directors unfortunately had no alternative but to place the company into administration. Our thoughts are with the employees affected and we have ensured a range of support measures are available to them at this difficult time.”

A Welsh Government spokesperson said it has established a “taskforce to work with the staff affected by the closure” of the dairy’s Wrexham factory.

He added: “We are in discussions with farming unions and other stakeholders to consider what support is required at this difficult time.

“We have worked closely with Tomlinsons dairy over the last 18 months to try to help them resolve their ongoing business issues.”

The business was set up in 1983 by brothers Philip and John Tomlinson, expanding from a doorstep round using milk from their family dairy farm.