The South Norfolk-based firm called a creditors’ meeting to appoint a liquidator, should the business not find a buyer. The decision came after “production difficulties” resulted in trading losses, said business rescue and insolvency firm McTear Williams & Wood, which represented Frank Dale Foods.
Frank Dale Foods chairman Nigel Cushion said: “Sadly, time has run out for the company, but we are hopeful that a buyer can be found for the business and assets, so jobs can be saved. That is the board’s main focus now”.
The manufacturer of savoury and dessert canapés employs 57 workers, who now face losing their jobs, said McTear Williams & Wood. But, the insolvency firm said the food manufacturer could still be sold following interest from more than one party. Frank Dale Foods’s sale could save a number of jobs, it added.
Partner at the insolvency firm Andrew McTear said: “We are working with the board of directors to market the business and assets for sale and have already received serious interest.
“Anyone interested in buying the business should contact us immediately on 01603 877540.”
Frank Dale Foods had “traded successfully” since 1994, resulting in a period of “significant growth”, the firm said. The manufacturer supplied Her Majesty the Queen’s Jubilee celebration in 2012.
‘Experienced a downturn’
A McTear Williams & Wood statement said: “The company traded successfully for many years but experienced a downturn in 2016 caused by production difficulties servicing sales, after a period of significant growth.
“The resulting trading losses put strain on cash flow and efforts to refinance proved unsuccessful.”
Meanwhile, the party foods maker secured a £675,000 investment in 2014, creating 15 jobs. At the time, the company said the funds would double the business’s turnover to £7M by 2019.
Frank Dale Foods also invested £200,000 in 2010 to fulfill soaring demand from hotels and catering firms.
- Called creditors’ meeting for February 28 to appoint a liquidator
- 57 workers face job cuts
- Jobs could be saved if a buyer is found before liquidation