A FROZEN food company is reportedly still in the running to buy a Northumberland factory, despite its Tyneside base having closed down.
Longbenton Foods is said to be still in with a chance of buying the former Northumberland Foods site at Amble, but an unnamed company is reportedly waiting in the wings should a deal not be reached, which may be interested in resuming production. The site at Amble was occupied by Longbenton Foods prior to Christmas after it paid a deposit and exchanged contracts with Begbies Traynor, the administrator employed following the collapse of Northumberland Foods.
However, the factory was shut down after the administrator was given a high court injunction when Longbenton Foods missed several deadlines to pay the remainder.
The contract for the sale was eventually torn up by the administrator and the factory and its contents were put up for sale by industrial auctioneering company Sweeney Kincaid.
The deadline for offers was originally Wednesday of this week. But this was put back to March 2, before being brought forward to Wednesday of last week.
A spokesman for the administrator last night would only say that a sale has not been agreed and that it is involved in negotiations. But company partner Bob Maxwell has been quoted as saying: “We are still trying to sell to the Longbenton Food Group, failing which we have another buyer waiting to complete.”
Mr Maxwell reportedly said the unnamed company “possibly” intends to restart production.
Company owner Geir Frantzen has previously told The Journal he still hoped to buy the factory and resume production. News that his company is still being considered as a buyer for the Amble site comes on the back of its Tyneside base having shut down. Mr Frantzen has blamed “temporary cash flow problems” due to increased overheads for the closure but said on Friday he hoped to have the site reopened in eight to 10 days.
He last night said he had “no news” but claimed he hoped to have “good news” today. Keir Hawe, who represents some workers at the Tyneside site for union GMB, said next week is “crunch time” for employees there as that is when they are due to be paid. “We are extremely concerned to say the least,” she added.
Berwick Liberal Democrat MP Sir Alan Beith has taken up concerns of Amble staff with Mr Frantzen.
He said last night: “The long-term future of the business in Amble is crucial to the economy of the area and for employment prospects and I hope all those involved are putting their efforts into coming to an agreement which will see people back at work.”
