James Clark and Howard Smith from Interpath Advisory were appointed as joint administrators last month (December 2023), with Mills citing "corporate greed and poor management, the cost of living crisis, price rises in the global ingredients and utilities markets and the current state of the manufacturing economy in Britain”.
However, the entrepreneur and model, who first purchased the business in 2009, has now decided to “resurrect the company” at what she described as “great personal expense” in a statement published on her LinkedIn page. According to a document produced by Interpath Advisory, the rescue deal is worth £1m.
As part of the move, Mills will personally take control of operations and move the business to the North-East in order to “ensure that we are still able to make a positive contribution to the future of our global food economy”.
Explaining the next steps for VBites, Mills added: “We have already developed a version 2.0 of plant-based food, soon to launch, that we believe will be a market mover and will help all of those people attempting to make a flexitarian or plant-based/vegan transition achieve their goals more easily, both with variety and deliciousness.”
Mills also stated that the initial decision to call in administrators on “three days’ notice” was “unnecessary”.
“It was agreed between both shareholders that we would always give each other three months’ notice, knowing the figures six months ahead set for the company, so I was doubly shocked that it went straight into administration, even though I gave viable solutions,” she continued
“But I strongly believed that the next-generation technology that VBites had developed and the work it had done still had a huge role to play in assisting the transition of the food market to a healthier and more sustainable place. I was also not happy being told that many of my loyal and hard-working staff were losing their jobs. I was cut out of everything.”
Commenting on the news, Nick Stockley, partner at solicitors firm Mayo Wynne Baxter, said that while this deal ensures the VBites brand name would be saved, it will operate under a "different legal entity".
"VBites Foods Limited will ultimately either dissolve or go into liquidation," he explained.
"The expectation is that secured creditors and preferential creditors, predominantly employees, will be paid in full. VBites’ unsecured creditors are expected to get paid something towards their debts, but it will be a fraction of what is owed.
"Some VBites employees will be employed by the new legal entity, but they were not a part of the buy-out, therefore, some may not get jobs with the restructured VBites."
In other news, the founders of North Brewing Co have confirmed that they have "submitted a notice of intent" to appoint administrators.
