Northumberland Foods calls in administrators

Aug 20 2010 by Brian Daniel, The Journal

ADMINISTRATORS last night confirmed they have been called in to deal with a troubled North East food company.

Most of the 200 staff are believed to have been made redundant after Northumberland Foods, formerly Cheviot Foods, at Amble, went into administration a second time.

The Journal reported yesterday how staff were facing an uncertain future just a year after the firm was handed a taxpayer-funded loan to keep it going.

Staff at the site have confirmed that Begbies Traynor have been appointed as the company’s administrators.

Workers were being briefed on their future yesterday and a statement was due to be issued today. The company, which specialises in frozen potato products, is the town’s biggest employer.

Cheviot Foods first went into administration in September 2008 following which Country Chef Ltd announced it was seeking to buy the company.

That deal failed to materialise, leaving the company facing closure.

However, a management buyout succeeded in saving the business.

In August 2009, Northumberland County Council gave the company a further £250,000 as a loan, despite warnings from its head of finance Steve Mason that there was an “unacceptable” risk of the money not being repaid and several councillors voicing concerns.