Northumberland Foods sell-off hopes get a boost
Sep 3 2010 by David Black, The Journal
HOPES of rescuing a collapsed Northumberland food company have risen after administrators were able to put together a potentially more attractive deal for would-be buyers.
Northumberland Foods – the biggest employer in Amble – ceased trading two weeks ago and made all of its 250 workers redundant.
The major economic blow followed the breakdown of advanced negotiations being carried out by administrators Begbies Traynor with a potential buyer for the frozen potato producer. Now Begbies Traynor has been appointed to handle the affairs of Amble Asset LLP, the holding company of Northumberland Foods which was also placed in administration last Friday.
Amble Asset owns the factory, production line equipment and other plant and machinery, which it leased to Northumberland Foods.
The move means the administrators can now offer potential buyers the physical assets of the business, as well as its trading name, remaining supply contracts and goodwill.
It has raised hopes that the business could yet be resurrected, and at least some its former workforce re-employed at the factory on the Coquet Enterprise Park.
Yesterday, joint administrator Andrew Haslam, a partner at the Newcastle office of Begbies Traynor, said: “We are hopeful that this turn of events will increase the potential saleability of the business.
“We feel it is now a much better investment opportunity.
“You don’t do a deal like this quickly and it could be several weeks before anything happens, because of the need for due diligence. Unfortunately, the initial expressions of interest in acquiring Northumberland Foods as a going concern have not proved to be successful.
“With our appointment as administrators to Amble Asset, we are now in a stronger position to attract interest from parties proposing to utilise the assets in some way.
“We think that having the physical assets available now could open things up to a few more interested parties.”
Mr Haslam said he has already received three inquiries from potential investors who now see the deal as a better opportunity.
So far, only Northumberland Foods’ remaining product stock has been sold. Last week Borders Premium Potatoes, a co-operative of 17 potato farms in the Scottish Borders and Fife, emerged as a potential buyer for the Amble business.
It claimed its farmers are owed around £500,000 by the failed company and it had approached the administrators to register an interest in taking over Northumberland Foods.
Yesterday Borders’ managing director, George Best, was unavailable to comment on the latest development.
It is believed it would take an offer in excess of £1m to buy the Amble business.
The Journal revealed earlier this week how a Northumberland County Council report on the collapse of the company had predicted that then loss of the firm will have far-reaching and long-lasting implications for the area.
Officers say the jobs will be extremely difficult to replace, the loss of wages will hit the local economy and the impact on the surrounding farming community will also be severe, in that some growers are owed six-figure sums and have already planted potatoes for future supply to the business.
We think the physical assets available now could open things up to a few more interested partiesCraig Revel Horwood director of Chess at the Theatre Royal shows his support to the MacMillan Cancer Coffee Morning.
Pic Andy Commins 30/08/10
