Sandwich maker administration results in 2,100 job losses

More than 2,000 jobs have been lost, including those at a Haydock site in Merseyside, after the collapse of one of the UK’s biggest sandwich makers.

Adelie Foods is estimated to have controlled between 10% and 20% of the UK sandwich market, making it the third biggest player in the sector.

But the advent of COVID-19 has decimated the ‘food to go’ industry after the introduction of the Government’s lockdown rules.

Deloitte was appointed as administrator to the firm on Tuesday last week, but said it has been unable to find a buyer for the business, resulting in 2,169 redundancies.

Adelie is based in Southall, London, but had sites at Haydock, Prologis Park near Heathrow, Wembley, Tamworth in Staffordshire, Kilmarnock in Scotland and Cardiff in Wales.

Deloitte said around 22 staff have been retained to help with the administration process.

The administrator said it had undertaken a “very rapid” assessment of the options available in the absence of any funding to enable ongoing trade.

It revealed that a previous sale process had resulted in an agreed going concern sale, but that it was not possible to implement the deal due to a key regulatory approval not being forthcoming.

Joint administrator Rob Harding said: “COVID-19 has presented huge challenges to this business given the lockdown measures and associated impact on the ‘food to go’ sector.

“It is very unfortunate that we couldn’t enact the previously agreed sale and it is with sadness that we now have to announce such a significant number of redundancies.

“This is a very difficult time for the group’s employees and other key stakeholders. We will do everything we can to support them through this and would like to thank all for their continued support.”

Industry sources said that, as shops prepared to reopen under an easing of the lockdown measures, there could be some operators who could be interested in buying the factory assets of Adelie as demand for food to do returns over the next few months.

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