Fresh hope for Northumberland Foods jobs
Oct 28 2010 by Brian Daniel, The Journal
HOPES of saving jobs at a Northumberland food factory were raised last night after it emerged potential buy-out talks were ongoing.
It is believed a deal has been reached for the sale of frozen food producer Northumberland Foods to Longbenton Foods. However, there were also suggestions that the Amble site will be operated by Longbenton Foods only until Christmas. The company on Coquet Enterprise Park was placed into administration in August. Its 250 staff were sent home, before returning two days later.
They were told a deal to sell the site had fallen through at the 11th hour, that the company had ceased trading and that all workers were being made redundant.
Administrator Begbies Traynor later said it was also acting as administrator for Amble Assets LLP, the company which owns the factory, and that it was seeking a sale of both firms.
Longbenton Foods, a frozen food producer, is based at Benton Lane, Longbenton, North Tyneside, and was formerly owned by Findus.
The site was closed by administrators last January after a fire, with all 420 staff being laid off by then operator Newcastle Productions. It reopened subsequently, funded by £3.4m from One North East and a short-term loan from North Tyneside Council.
Following confirmation last night that an announcement was imminent, Sir Alan Beith, Liberal Democrat MP for Berwick, said: “I am very pleased that there is some prospect of jobs for people who worked at Northumberland Foods.
“I very much hope that the new owners will seek a long term future for work at the Amble plant.” Ian Hinson, a member of Amble Town Council, added: “I am delighted, absolutely delighted.
“I had convinced myself that the place was doomed and that there was little hope of resurrecting it. When I was told it is only until Christmas, I thought as long as it is afloat at Christmas, it is as much as we can hope for at the moment.
Northumberland Foods began trading in February last year after a management buyout of Cheviot Foods, which had been on the brink of closure when it went into administration in September 2008 and a deal to sell it fell through.
The buyout was assisted by funding from Northumberland County Council and One North East.
In August last year, the county council loaned the company a further £250,000 which it failed to repay prior ceasing trading. Further cash aid came from One North East and Royal Bank of Scotland.
