Administrators hunt for Millar Savoury Foods buyer

08-Jun-2011 - Last updated on 13-Jun-2011 at 07:59 GMT

Paul Rankin (pictured left) collaborated with Millar Savoury Foods in 2009

Northern Irish meat product supplier Millar Savoury Foods has gone into administration, blaming difficultlies in passing on commodity price increases to supermarket customers.

The family company supplies Asda, Tesco and Sainsbury’s as well as foodservice and independent customers across the UK and the Republic of Ireland with sausages, burgers, pies, sausage rolls, scotch eggs and cottage pies.

36 employees the company's plant near Londonderry have been told that their jobs are at risk, said administrator, Ronan Duffy of McCambridge Duffy.

He said he had been called in on June 1 and was “actively pursuing options to sell the business as a whole”.

Commodity price increases

Duffy said: “While it is early days in my investigation, a significant factor contributing to the company’s insolvency is how fiercely competitive the food sector is. The company appears to have been unable to pass on commodity price increases to its customers, the supermarket multiples”.

Millar, which was established in 1969, owns brands including Mulligan's Munchers and Millfarm.

It saw a 21% hike in turnover in 2009 after it collaborated with celebrity chef Paul Rankin on a new range of Rankin Selection Pies, a deal that saw it grow its business with the UK multiples.

The company is understood to have debts of about £500,000.