Westler Foods, based in Malton, has gone into administration after it was unable to finance a £15m funding shortfall in its defined benefits pension scheme.
In a statement the administrators said, "This is an uncommon and unfortunate situation of a well run and profitable business being compelled to enter insolvency specifically because of the scale of its pension deficit." they went onto say, "The company has a number of extremely interesting contracts so we are trading the business as a going concern while seeking a buyer."
The firm employs nearly 200 people at its Yorkshire base making a range of canned and pouched food products.
Pension issues in insolvency have been recently highlighted in a case brought against Nortel Networks by the Pensions Regulator. We will blog on this case later.