Loss of Morrisons contract puts pizza firm into administration

Jobs are under threat after the loss of a key contract with Morrisons forced a pizza manufacturer into administration.

Duff & Phelps were appointed joint administrators to Paramount Foods on October 5.

The pizza manufacturer employs 138 people at the company’s Salford site in Salford, Greater Manchester and a further 312 at its site in Deeside, North Wales.

As a consequence of the company’s insolvency, the joint administrators have suspended operations while  urgent discussions are being held with key customers and parties who may be interested in acquiring some or all of the business.

No prospect for profit

David Whitehouse of Duff & Phelps told FoodManufacture.co.uk: “While the company has incurred trading losses historically, the recent loss of a major customer has left it without any prospect of returning to profitability in line with a turnaround plan embarked upon in July this year.”

Paramount Foods makes frozen and chilled pizzas for Sainsbury, Asda and Tesco.