The former site and machinery of historic pie maker Vale of Mowbray has been sold to two businesses, five months after firm collapsed with the loss of 200 jobs.
Administrators of the closed food firm, which had operated since 1928, said Dutch warehousing and cold chain logistics firm NewCold had purchased the Leeming Bar site where 200 people had worked before it went into administration last October. Meanwhile rival Compleat Foods, the makers of Classic Pork Pies and Melton Mowbray Pies, has bought the plant and machinery, some of which had been part of a £4m investment made as recently as 2021, to start production of scotch eggs.
The £24m turnover North Yorkshire business had supplied large retailers and some local independents until it ran into difficulties in the face of rising raw materials and energy costs, as well as problems recruiting caused by Brexit's curtailing of available labour from EU countries. Administrators at FRP said there had been attempts to attract new investment, and there had been an offer made for the business which included new funding to support a turnaround but that was later withdrawn.
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A poor Christmas trading period in 2021 was followed by difficulties in getting the new scotch egg production line up and running in early 2022, while target pork pie production volumes had been missed. Unable to meet supermarkets' requirements, the firm lost its ability to access customer promotions that would normally boost sales.
Loss making Vale of Mowbray had owed some £11.9m at the point administrators prepared a report on the business in November. The most recent accounts available show the firm suffered an operating loss of £1.16m in 2020, but generated an operating profit of £77,315 in 2021. Turnover had increased to £24.2m in 2021 from £23.1m.
Martyn Pullin, partner at FRP and Joint Administrator of Vale of Mowbray Limited, said: “Despite trading for almost 100 years, Vale of Mowbray faced significant challenges and was no longer able to operate or secure the investment needed to trade. While it’s never easy saying goodbye to an established brand, we’re pleased to have found buyers for both the site and machinery and wish them all the best in the future.”
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