Published: 15th December 2016
Rivington Biscuits has entered administration after struggling with serious financial problems and the consequences of Britain’s recent decision to abandon its EU membership.
The Wigan-based company has been a long-standing employer in Greater Manchester but now faces a very uncertain future, with its workforce set to be reduced from numbering 123 to just 24 people.
A small-scale team of employees are to be kept on to help the business fulfil its outstanding orders into the New Year.
Rivington’s recent financial woes and entry into administration have been blamed largely on the fall in the value of the pound in the wake of the UK’s Brexit vote.
The biscuit company, whose better-known products include Pink Panther Wafers, was struggling financially before the Brexit referendum vote took place in June but the fall in the value of sterling in recent months is understood to have had a significant impact on its sustainability as a business.
“A sustained deterioration in trading conditions and significant additional pricing costs since the summer following the sharp fall in the value of the pound, left the business facing unsustainable cash-flow pressure,” a statement from the appointed administrators explained.
“As administrators, given the financial situation of the company, we have had to take the difficult decision of making a large number of redundancies and our immediate priority is to assist those staff who have lost their job to make timely claims with the Redundancy Payments Service.”
Administrators have indicated that they would welcome any expressions of interest in acquiring Rivington Biscuits or any aspects of its business.
The value of the British pound has decreased very considerably in relation to other international currencies since the UK public voted to leave the EU earlier this year.
In early November, the pound’s value had sunk by as much as 20 per cent against the US dollar as compared with exchange rates before the Brexit vote results were in.
A less valuable pound effectively makes it more expensive to import goods from overseas into the UK, which can contribute to financial difficulties for manufacturing companies like Rivington Biscuits. We have an extensive network of 78 offices offering confidential director support across the UK.