Mark Boughey and Diana Frangou from RSM Restructuring Advisory have been appointed joint administrators of the company.
Formerly known as Crediton Confectionery, the company was bought out of administration by the recently established Devon Sweet Factory in November last year.
The company was part way through a turnaround process and had returned to profitability, according to RSM. However, the directors took the the decision to cease trading and appoint administrators after “unforeseen working capital pressure”.
Made 52 employees redundant
Devon Sweet Factory made 52 employees redundant, retaining six staff members in the short-term to assist administrators to carry out duties.
Mark Boughey said: “We have received a number of approaches from parties interested in the company and its assets and there is still a possibility that production will continue, either on the existing site or by moving the facility into an existing manufacturing operation.”
It is now the third time that the Crediton factory has fallen into administration in the past six years.
Crediton Confectionery was formed in 2011 when David Ives acquired the factory from sweet manufacturer Bristows of Devon, after it closed and 73 workers lost their jobs.
73 workers lost their jobs
The factory manufactured chewy bon-bons and fudge under the Tuckers and Bristows brands, as well as manufacturing a number of own-label products for supermarkets and other brands.
A number of other food and drink businesses have entered administration this year.
Last month saw independent brewery Tom Woods Beers fall into administration, after failing to pay back its creditors as part of a finance deal.
Meanwhile, in April, up to 37 jobs were put at risk at fish processing firm Aquila Processing, after financial pressure as a result of a weakened pound after the Brexit vote placed them into administration.
History of Devon Sweet Factory – at a glance
- 1932 – Bristows of Devon founded by the Bristow family
- 2011 – Bristows enters administration. Bought by David Ives and renamed Crediton Confectionery
- September 2016 – David Ives establishes Devon Sweet Factory
- November 2016 – Crediton Confectionery enters administration. The company is bought by Devon Sweet Factory and the Crediton site is renamed Devon Sweet factory.
- July 2017 – Devon Sweet Factory enters administration