Administrators complete pig sales
ADMINISTRATORS of one of the North's largest pig farming businesses which collapsed with debts of more than £3m have completed deals to sell almost all of its 61,000-strong herd of animals.
Charles Escott, partner at accountants Grant Thornton in Leeds, and joint administrator of MCB Sowco and DRS Pigs in Partnership, has finalised the sale of all but one of the breeding herds to Suffolk-based pig growing firm Easey Pigs.
Easey Pigs has also bought the majority of the nursery and finishing herds of MCB Sowco and DRS Pigs, which is based at North Newbald, East Yorkshire.
The deals mean a sale has been completed for more than 60,000 pigs at around 75 locations across the North of England.
The sales, completed within 11 days of the administration appointment, bring a conclusion to what could have been an extended period of uncertainty for farmers.
Commenting on the sale, Mr Escott said “These two transactions should be excellent news for all the contractors concerned – we understand the new owner has every intention of continuing the businesses, meaning contractors can continue to manage the herds and have a future stream of income.”
He added: “In addition, we are pleased that we have achieved going concern values for such a substantial quantity of pigs, and these ensure there will be a dividend payable to all unsecured creditors, including the contractors.
“There remain a couple of herds that we will deal with separately, and which are under offer together with a freehold farm property for which we are inviting offers and some farming equipment and vehicles.”
The administrators were advised by David Rawson at Eversheds in Leeds. Easey Pigs was represented by Peter Crichton Pig Industry Consultancy Services.
DRS Pigs and MCB Sow Company had a breeding herd of around 6,100 sows and 55,000 pigs across Yorkshire, Humberside and Lincolnshire.
The company had contracts with around 90 farmers to breed and rear pigs outdoors and it supplies more than 2,500 animals to food producers each week.
The two main creditors were HSBC bank and feed company Associated British Nutrition, both of whom are reported to have been unable to supply further financial support in the face of low finished pig prices and high feed costs.
