Last month, Freshpack Ltd went into administration. The Alsager-based, frozen pastry products and ready meals manufacturer, supplied retailers and discount stores under their own brand as well as white label goods.
Following the administration in June, appointed administrator, Matt Dunham of Dunham Dean Advisory shed 10 employees. The firm continued to negotiate with many other parties and initially, there was lots of interest. However, no one was able to secure a deal and so no suitable buyers were found. The final buyer walked away this week, so now, as a result, all the 60 staff will become redundant and the company has no other option than to cease trading.
Dunham remarks how the low margins Freshpack were achieving, made the company particularly unattractive to buyers. The low margins are said to be due to the intense competition, in terms of value, and the fall in the pound which has pushed up prices – affecting the convenience food sector.
Dunham speaks on behalf of the company, saying, ‘it is with great regret that we have to announce the closure of the business but we would like to thank the staff for their loyal support during what has been a difficult period’’.