PoleStar Foods staff demand answers from Privet Capital
PoleStar Foods was formed in late 2009 following the acquisition of Heinz’s UK frozen desserts business but quickly ran into financial difficulties.
Things came to a head last November when Privet Capital - an expert in ‘turnaround private equity funding solutions’ - said it could secure the future of its factory in Okehampton but not the factory at Leamington Spa, which has just closed with the loss of more than 160 jobs.
However, earlier this week, 232 workers at Okehampton were also made redundant, prompting a flurry of calls and emails to this publication.
Appalling treatment
One source said: “They need to explain why we have all lost our jobs.”
Another added: “You also have to also spare a thought for all those companies who have supplied PoleStar with raw materials and have not been paid and are looking at big financial losses.”
A third added: “It is appalling the way that the workers have been treated. I haven't been paid for the last two weeks. How do they expect me to live?
“Two months ago Privet were saying they were heroes for saving jobs. Two days after that they put the Leamington factory into administration and now Okehampton.”
Hopes that staff can be re-employed under new ownership
Privet Capital declined to comment on rumours that restructuring, recovery and insolvency specialist FRP Advisory was going to serve as an administrator to the firm, but added: “Privet is a turnaround investor and is trying its very best to turn things around in a very difficult situation.
"We are working towards an outcome where a buyer can be found for the operation in the hope that some staff can be re-employed under new ownership.”
FRP Advisory said: “We are providing advice to PoleStar Holdings Ltd but we have not been appointed as administrator.”
Speaking to FoodManufacture.co.uk in December, Privet director Ian Astley said that Privet’s investment would support PoleStar’s working capital requirements at Okehampton.
He added: “It will also provide the company with a renewed focus, increased financial strength and a clear strategic plan, thereby ensuring that it is well-placed to continue as one of the UK’s leading manufacturers and providers of frozen desserts for many years to come.”
