Neil Henry of insolvency specialist Lines Henry has been appointed administrator on 19 March, with plans to sell of the assets of the company. The company has ceased trading.
Commenting on the appointment, Henry said: “Along with many similar businesses it has struggled with the increased costs of materials, distribution, and utilities. In addition, there has been an increasing number of pub closures which has had an impact on sales.
‘Could not continue’
“All of this has meant that, despite producing a product that has won many awards and accolades, the business could not continue and had to close.”
Manufacturing accounted for 11% of all UK administrations in 2023, the fourth worst hit industry last year, according to law firm Shakespeare Martineau. The Retail, manufacturing, hospitality, construction and real estate sectors together made up 59% of administrations during the reported period.
Plant-based food manufacturers were caught in the crossfire, with high profile names such as V-bites and LoveSeitan filing for administration in 2023.
Shakespeare Martineau partner and head of restructuring Andy Taylor said the cost of money, marked by high interest rates throughout 2023, exacerbated financial strains on businesses with models that thrived in a sub-2% interest rate environment.
Bearing the pressure
“Organisations can only bear that pressure for so long before its sustained impact starts to wash through and they begin running out of cash,” he added.
Meanwhile, in January, North Brewing Co had its future secured after it was acquired by Steve Holt of Kirkstall Brewery.
The brewer has fallen into administration just four days after its co-founders John Gyngell and Christian Townsley confirmed they were seeking additional investment.
Gyngell’s and Townsley’s decision to call in administrators followed a period of turbulence in the wake of the COVID-19 pandemic, Brexit struggles, material cost increases, the cost-of-living crisis and interest rate rises.
