Ready meals deal leads to 100 job cuts

07-Mar-2016 - Last updated on 07-Mar-2016 at 12:36 GMT

Dutch company Zwanenberg owns the Westlers brand alongside Malton Foods and other food businesses

More than 100 jobs will be lost in Manchester, after ready meals manufacturer Malton Foods bought the ambient pots, pouches and canned pudding business of Simpson Ready Foods for an undisclosed sum.

In January family-owned Simpson, which celebrated its centenary in 2010, opened consultations with staff about selling off parts of the business or closing it completely.

Md Andrew Simpson said trading conditions had been difficult for a number of years. Although shareholders had put new investment into the business it had not been possible to turn it around, he said.

Loss of more than 100 jobs

He confirmed the business would be closing with the loss of more than 100 jobs but said he was not able to disclose precise timings.

The purchase included the Goblin and Simpsons brands, in addition to the manufacturing infrastructure and ongoing trade order book.

The Goblin brand comprised a range of traditional savoury and sweet puddings in plastic pots, sold through Asda, Morrisons and Tesco.

The Simpsons brand included steamed dessert puddings in traditional cans.

Simpson said he still hoped to be able to sell the canned ready meal part of the business, which was not included in the deal with Malton Foods.

Dutch company Zwanenberg bought Yorkshire-based Malton Foods three years ago. Mitch Higgingson, ceo of Zwanenberg Food UK, said: “The purchase builds on Malton Foods current expertise in ambient grocery, where we already have a significant presence in ready meals, sides and sauces. It also adds ambient desserts and pastes to Malton’s product portfolio.

New trading relationships

“This is an exciting opportunity for Malton Foods to open up new trading relationships and categories as well as opening the door for future innovation.”

Production will be moved to Malton Foods production facility in Amotherby, north Yorkshire, during April, creating additional jobs at the site. Meanwhile, the company is building stocks to ensure existing customer supply is not interrupted during the transition.

Zwanenberg Food UK has three manufacturing divisions in the UK employing more than 400 people.

It also operated in the UK: Taste Original, The Big Kitchen, Rea Valley, Westlers and Puredrive Fine Foods.