Hotdog firm seeks buyer following administration
Westler Foods produced food products in both canned and pouched form for large brands including Chesswood, BigMex, Westlers and Multi Menu. It employed more than 200 people at its headquarters.
During an evaluation of its spending in early 2009, the business discovered a funding gap of more than £15 million related to its defined benefit pension scheme.
Following the findings, Westler Foods attempted to fill the gap with both external and internal investment over the past year, but found it impossible to do so and were forced to call in KPMG as administrators.
Howard Smith and Mark Firmin of KPMG's restructuring practice, said, "This is an uncommon and unfortunate situation of a well-run and profitable business being compelled to enter insolvency specifically because of the scale of its pension deficit.
"The company has a number of extremely interesting contracts so we are trading the business as a going concern while seeking a buyer," he added.
Nine out of the 200 employees have already been made redundant.
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