Farmright Group, the company behind the Dairystix milk pouches, has been placed into administration
along with its subsidiaries Quadra Foods and Farmright Ltd.
Its other two subsidiaries, Dairystix, and Stickpack Europe Limited, had already entered administration
The group has hired Nigel Morrison and Alistair Wardell of Grant Thornton as the joint administrators, and owes up to £4 million to Dairy Crest.
The administrators are assessing the situation at the Quadra Foods milk-processing unit to see if it can continue trading. It is possible that redundancies will be made amongst the 122-strong Quadra workforce.
The possibility of a sale for Quadra Foods and Farmright is also being looked into.
Quadra operates a 60,000 sq. ft. dairy processing unit in Plymouth. Its Dairystix café and airline liquid milk pouches are well known.
Based in Gloucestershire, Farmright Ltd has 11 staff, and buys milk from farmers across the UK, before selling it on to dairy processors.
Founded in 2008, Farmright Group had, only five months ago, announced plans to expand overseas into markets including South Africa, America and the Middle East, mainly on the strength of its Dairystix sales. It had predicted a need to take on an additional 40 staff by the end of this year.
The group failed to secure the funding required to invest in new technology and enter new markets, the administrators said.