Amble Town Council confirmed last week that the frozen vegetable site in Northumberland had been closed since December 6, with administrator Begbies Trayner granted an injunction to prevent the site being used and pursuing court action against Longbenton Foods.
The action is believed to stem from non-payment of a substantial amount owed by Longbenton Foods to Begbies Trayner for the site.
But it appears a resolution has now been reached, after a spokeswoman for the Newcastle-based company told FoodManufacture.co.uk this morning: “Production restarted at Amble yesterday, and reports that staff have been unpaid since October are incorrect.”
However, the spokeswoman refused to comment on reports in the Northumberland Gazette that the Amble site was closed because Longbenton Foods owed the administrators money, and said the firm was “sick of people printing all the bad news”.
Current MD leaving?
She was also unable to confirm reports that Longbenton Foods md Vidar Engen is quitting the company for what he reportedly said are family reasons unconnected with the current upheaval.
Chairman of Amble Town Council Leslie Bilboe told this publication last Friday that workers he knew at the site had only been paid one fifth of their wages over the last month.
But Bilboe confirmed this morning the factory had reopened and staff paid: “My neighbour has been fully paid-up and returned to work yesterday.”
“I’m so pleased it seems to have been resolved because it was terrible for staff to have this hanging over them after their loyalty to the company.”
Bilboe added that he hoped to speak to company management next week, after complaining last week that no-one from the firm was willing to speak with him about its long-term intentions for the Amble site following its initial reopening in November.
Troubled site history
Production originally restarted in November at the former Northumberland Foods frozen vegetable factory, after 250 jobs were lost at the site in August as the firm went into administration.
Northeast rival Longbenton Foods then took over the site and re-employed 70 former staff; it also said it had signed supply contracts with local producers, while the firm hoped production lines would be running at maximum capacity by Christmas.
Before it was taken over by Longbenton Foods, Northumberland Foods made frozen vegetable products for clients including Tesco, Sainsbury’s and Iceland.
Longbenton Foods itself only restarted production at its larger North Tyneside site (pictured), which employs around 315 staff, last September, after the factory was devastated by fire in early 2009.