One of Wales’ leading food supply companies has gone into administration with the loss of nearly 230 jobs.
Abertillery-based Tillery Valley Foods has blamed the move on inflationary pressures with spiralling food and energy costs impacting cashflows. It said despite increasing its prices the business was no longer able to trade solvently. A potential sale of the business was explored, but didn’t materialise.
The Welsh Government said it did try to support a management buyout of the business, which it said wasn't supported by the ultimate owners in private equity backed Joubere Food Group.
Tim Bateson and Will Wright from Interpath Advisory have been appointed joint administrators resulting in nearly 230 staff being made redundant with immediate effect.
The business, with annual sales of more than £20m, provides meals to the local authorities, schools and 30 NHS Trusts across England. The administrators have retained 24 employees to assist with an orderly wind-down of the business.
Mr Bateson, director at Interpath Advisory and joint administrator, said: “This is a tremendously sad day for the Company’s dedicated employees, a number of whom have worked for the company for over three decades, as well as for the wider community in Abertillery.
“Our immediate priority will be to provide support to all those who have been made redundant, including supporting them with the information required to submit claims to the Redundancy Payments Office, and we are also aiming to host workshops in conjunction with local employment agencies and employers.
“Over the past few months, the directors have worked tirelessly to safeguard the future of the business, including undertaking a process to seek new investment and/or owners. They have also been in regular dialogue with key stakeholders, including local MPs, Welsh Government and NHS England, keeping all informed.”
Prior to the administration the business was one of the biggest private sector employers in Abertillery.
A Welsh Government spokesperson said: "This extremely disappointing news will be a major blow for such a dedicated workforce, their families and the wider community.
“We have worked intensively with the local management team and Blaenau Gwent County Borough Council throughout the last week to explore options for a management buyout. The Economy Minister (Vaughan Gething) met the team and the plant’s union several times during that time to seek a resolution
“The tireless efforts of the local management buyout team helped to demonstrate that a viable business is a genuine prospect at the site and we continue to consider how this could be developed further, despite today’s news, in order to secure a successful business in the longer term.
“It is deeply regrettable that the leadership of the outgoing company did not provide the openness and transparency required to allow the time needed for a strong business plan to be developed. Over a period months, we have repeatedly sought information from the leadership of the outgoing business to help prevent this outcome and develop alternative options. Unfortunately the information has not been forthcoming in a clear and timely manner.
“We will now establish an urgent taskforce alongside the local authority, Community Union, local elected representatives and DWP. This will include Welsh Government support via Careers Wales and the ReAct programme, with tailored packages of support designed to help the workforce find new job opportunities."
In a statement given to ITV, Stephen Bolton, executive chairman of Joubere said "I am deeply sorry that despite the best efforts of all involved we have not been able to save the business," adding that when Joubere purchased it 20 months ago, they "walked straight into the teeth of the energy crisis" and were hit with £2m in energy cost increases in their first year and subsequent inflation in ingredients and materials costs."
He also referenced having "actively engaged" with the Welsh Government but said "nothing was forthcoming.
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