A fresh produce supplier group with an annual turnover of £150m has gone into administration.
Four partners at Deloitte, Birmingham, were appointed as joint administrators to MBN Bomford, W Bailey and GF Produce on 22 June.
The group supplies fresh produce to supermarkets.
Deloitte attributes the failure of the group to cost over-runs in the recent construction of a new pack house and administration building at Atherstone, Warwickshire, together with the start up investment of the Bomfords Prepared Business, both of which hit group cash flows. It also made two recent acquisitions where integration benefits came slower than expected.
Deloitte partner Andrew Peters said: “Administrators have already been contacted by a number of interested parties and the firms are continuing to trade as normal while administrators seek either the rescue or sale of the group.”
Bomford management was unavailable for comment at the time of going to press.
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