‘Losses and legal claim sunk Poole’s Pies’
THE administrators of Poole’s of Wigan, the pie and pastry manufacturer, said a significant legal claim by a rival and continuing losses had triggered the pre-pack sale of the business.
Hale-based accountancy firm Milner Boardman & Partners was appointed last week and quickly sold the business, previously owned by entrepreneur Dave Whelan and employing more than 50 people, to Leeds-based Country Style Foods, part of Midland Bakery.
In a statement the firm said: “The Wigan based business was placed into administration following a period of loss-making for the business and there being little likelihood of the company coming back into profitability in the immediate future, and the potential cost of the settlement of a significant legal claim made by a rival operator.”
It is understood the rival operator is 2 Sisters Group, owner of Hollands Pies and related to hiring of its staff by Poole’s.
Joint administrator Gary Corbett, a partner at Milner Boardman, said: “The company has faced a difficult few months and has continued to make losses. Business forecasts prepared by the company gave no imminent indication of a return to profitability leaving no option but to either close the company down or find a quick sale.”
Last year Wigan Athletic and DW Sports owner Mr Whelan entered into a deferred sale agreement with former Hollands Pies boss Neil Court- Johnson, but this was never completed.
Andy Gee finance director of Dave Whelan Sports said: “This is a good outcome for the business which has been struggling for some time despite significant investment in plant and machinery.
“We are pleased with the way the administration and sales process has been handled ensuring staff jobs are retained and the company can continue to trade.”
Joe Wood, managing director of Country Style Foods said: “This is a great opportunity for our company as the purchase of this business gives us access to new customers and markets.”
