Food logistics firm saved from administration

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EV Cargo Logistics has bought NFT out of administration

Chilled logistics firm NFT Distribution Operations has been bought out of administration, safeguarding the jobs of 1,980 workers.

The business, which counts retailer J Sainsbury as one of its biggest customers, appointed PricewaterhouseCoopers (PwC) as administrators last year, after reporting a pre-tax loss of about £31m in its 2018 full-year financial results.

EV Cargo Logistics (EVCL) acquired a majority of NFT’s assets, a move that protected jobs and ensured a seamless transition of the business and services for its associated customers

The sale did not include the operations at NFT’s Tilbury site, which has continued to trade with the ongoing support of key customers while all parties explore potential solutions.

‘Stronger financial footing’

Rob Moran, PwC restructuring M&A (mergers and acquisitions) partner, commented: “The sale of the majority of the business to EV Cargo Logistics Limited puts the ongoing business on a stronger financial footing.  

“We are pleased to have supported NFT in this M&A transaction and wish EVCL very best wishes with its future trading”

However, the sale has not been able to protect all 2,231 members of the workforce, with at least 231 members of staff expected to be made redundant as a result.

‘Challenging trading conditions’

PwC deals partner Peter Dickens added: “I would like to personally thank the NFT team for their tireless hard work in securing the future of the business and so many of their colleagues’ employment, after a period of challenging trading conditions.

“It is with regret that we have had to make a small number of redundancies and we are providing support to those impacted by this.”     

Meanwhile, jobs at desserts maker Indulgence Patisserie have been saved after certain assets of the company were bought out of administration by specialist turnaround investment firm Volvere.

Under the terms of the deal, the trading assets and the property assets of Indulgence Patisserie will be held in wholly owned subsidiaries of Volvere.