Wed, 12 Jun 2024 | ADMINISTRATION
A cheese factory on Anglesey has fallen into administration after encountering funding difficulties. The 25,000 sq ft, Mona Dairy factory on Mona Industrial Park only opened in summer 2023.
Shortly after its opening, the factory announced a multimillion-pound expansion plan, with the aim of ultimately increasing the facility’s capacity to produce over 30,000 tonnes of Welsh and continental cheese each year. There was also considerable investment in efforts for the site to achieve Net Zero status, including switching to electric vehicles for milk collection and haulage.
However, in a statement released last month, the company announced that it was close to collapse, saying it had faced a challenging period following a £20 million investment in the Anglesey facility.
The statement read: “After five years of striving to develop the newest and most sustainable cheese factory in Europe and fighting against many factors outside of our control, Mona Dairy in Anglesey is sad to announce that it has failed to source sufficient short-term funding from its key stakeholders to keep functioning in its current form.”
“We remain hopeful that we can secure a new outcome in the coming days and Mona Dairy will be able to continue its journey, even if that means it is under new ownership.”
As a result of these issues, Mona Island Dairy Limited fell into administration on June 7 2024, with Anthony Collier and Phil Reynolds of FRP Advisory appointed as joint administrators. Upon their appointment, 24 employees were made redundant.
Mona Dairy said in a statement that the joint administrators “are currently exploring options of Mona Island Dairy Limited, and separately will be in contact with all known creditors in due course.”
Joint administrator and FRP partner Anthony Collier said: “Mona Island Dairy has a compelling proposition with its modern, sustainable facilities.”
“Unfortunately, it’s not been able to raise the funding needed to continue operating and so sadly 24 employees have been made redundant and we are helping them to access support from the Redundancy Payments Service.”
“We are now focused on finding a solution for the business and invite any interested parties to come forward.”
In accounts for the year to December 31 2022, Mona Island Dairy Limited’s fixed assets were valued at slightly over £15 million and current assets at £143,088. However, its net liabilities at the time amounted to £1.49 million.
Read more about how a range of headwinds are driving insolvencies in the UK food sector
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