Huge Slice of Bad Luck for Workers as Pizza Company Enters Administration
Written by: Keith Tully
Reviewed: Wednesday 10th October, 2012
One of the UK’s largest frozen pizza suppliers have gone into administration resulting in 118 redundancies across two sites.
Paramount Foods is continuing to trade whilst a buyer is sought for the firm which is based in Deeside Ind. Park, North Wales, and Salford, Greater Manchester.
The Deeside site has seen 76 jobs lost whilst 42 redundancies were regrettably made in Salford.
Administrators said: "Since it was announced that Paramount Foods went into administration, the joint administrators have had a number of discussions with customers, suppliers and potential buyers.
"The positive support shown by the company's key customers has ensured that Paramount Foods will remain trading while a buyer is found.
"It is with regret though that as part of the restructuring process that a number of jobs have been made redundant - a total of 118, 76 of which are based at the Deeside factory.
"The company is however still trading and the joint administrators are actively seeking a buyer for the business."
It is understood that administration was the only option after a key supermarket contract, believed to be with Morrisons, was lost.
Earlier this week, an administrator said: "Whilst the company has incurred trading losses historically, the recent loss of a major customer has left the company without any prospect of returning to profitability in line with a turnaround plan embarked upon in July this year."
Flintshire council said it will do what it can to support Deeside workers who need to find new employment.
Author
Keith Tully
Partner
Keith has been involved in Business Rescue since 1992, during which time he’s worked for both independent and national firms. His specialties include company restructuring matters and negotiating with HMRC on his clients behalf.
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