Food factory sale: the saga continues
Update: The Ambler has learned that efforts by Longbenton Foods to buy the Amble factory are still ongoing despite a statement by administrators that the sale had fallen through. A spokesman for Longbenton foods said today (Jan 24th) ” the finance is in place and we want to conclude asap to put 110 people back to work tomorrow”.
The spokesperson told us “we have not given up, and we still try to get Amble back up and running”.
The purchase of Northumberland Foods by Longbenton Foods has officially fallen through, according to a statement by the administrators. Longbenton Foods had failed to provide enough money and so the factory in Amble is once again up for sale.
The administrators, Begbies Traynor has issued the following statement:
21 January 2011
Statement from the Administrators
It is with regret that the Administrators of Northumberland Foods Ltd and Amble Assets LLP have finally rescinded the contract to sell the assets of Northumberland Foods Ltd and Amble Assets to Longbenton Foods Ltd.
Contracts for the sale of Northumberland Foods and Amble Assets were exchanged on 22 October 2010 and, following the payment of a non refundable deposit, Longbenton Foods was allowed to occupy the site in Amble and to commence manufacturing.
However, on the scheduled completion date of 22 November 2010, Longbenton Foods was not in funds and was not in a position to complete. In the hope of facilitating the completion of the transaction, the Administrators granted a number of extensions to Longbenton Foods in order to allow the company the opportunity of raising the necessary funds to complete. The final extension expired on 22 December 2010.
When Longbenton Foods again failed to raise the necessary funds to complete by 22 December, the Administrators felt they had no option but to serve a notice to complete, making time of the essence. That notice expired yesterday (20 January 2011), but Longbenton Foods proved still not to be in funds and still not in a position to complete.
The Administrators owe a duty to all creditors to maximise realisations and have, therefore, decided that, given Longbenton Food’s continued inability to raise the necessary funding to complete the transaction, it is appropriate to rescind the contract.
The intention is now to press ahead with the marketing and sale of the business, including its plant and machinery and the property situated at the Coquet Industrial Estate, Amble.
It is hoped that a purchaser can be found who is able to recommence production in Amble and the Administrators are eager to talk to any interested party and will work with the Council in the hope that the jobs which the business previously provided can be restored.
Link to previous articles:
Concern over unpaid wages: http://www.theambler.co.uk/?p=1906
Temporary work at food factory: http://www.theambler.co.uk/?p=1245