RSM in Birmingham takes on collapsed frozen food chain
THE BIRMINGHAM office of RSM Tenon has been appointed administrators to frozen food delivery business Eismann UK and its sister company Country Home Foods.
The companies, based in Bedford, were forced to close their network last week – resulting in the redundancies of around 80 franchisee driver salespeople across the UK. Competition from supermarkets offering online shopping and home delivery has been partly blamed for the collapse.
RSM Tenon is now seeking buyers for the business and assets while it carries out the return of vehicles and stock.
Eismann UK was established more than 25 years ago and sells frozen food door-to-door and Country Home Foods carries out home delivery of frozen meals to older people.
The companies have long established national networks operating from 11 depots throughout the UK – including Boston, Corby, Fleet, Norwich, Selby, Southampton and Worcester. Combined turnover of both companies in 2010 was £9.8 million
Beverley Marsh of RSM Tenon said: “Around 80 franchisee drivers across the companies’ branches were made redundant on 31 January as the company could no longer trade the business while in administration, due to the sums owed to franchisees and suppliers.
“The administrators have also carried out a scaling down of manpower at head office, where a further 16 employees were made redundant.
“We are now seeking interested parties who are interested in taking over the business and assets. Eismann UK Ltd is a well known brand which has operated in the UK for more than 25 years and was a thriving firm.
“However, it appears that the launch of supermarket chains delivering groceries door to door has had a drastic impact on the turnover of the group.”
Eismann UK sells frozen food to thousands of UK customers via a franchise system involving driver / salespeople. In 2009, the company launched Country Home Foods which was developed to deliver frozen ready meals specifically to older people.
