Wed, 02 Mar 2022 | ADMINISTRATION
Administrators from FRP are seeking a buyer for Scottish seafood business Dawnfresh Farming, following the collapse of its parent company. Dawnfresh Seafoods and RR Spink & Sons (Arbroath), among the UK’s biggest producers and processors of seafood, fell into administration as a result of issues including cash flow problems and rising costs.
The administrators have secured the sale of RR Spink & Sons, which operates from a facility in Arbroath, to Lossie Seafoods, part of the Associated Seafoods Limited group. However, the company’s loss-making Uddingston facility has been closed with immediate effect.
Administrators will now market assets from the Uddingston site, including land, buildings and plant, for sale and wind up the facility. Subsidiary Dawnfresh Farming will continue to trade solvently while FRP seek a buyer and look to realise value from remaining assets.
The business was founded in 1973 and headquartered at the Uddingston site. In addition to its production and processing facilities at Arbroath and Uddingston, the company operates seven farms throughout Northern Ireland and Scotland. It offers a range of services, including fish processing and supply, to clients in retail, food service, wholesale and the export market. The company also produces branded products, including Loch Etive and RR Spink.
The business has undertaken significant investment in its plant and systems over recent years, as it sought to reduce costs and improve efficiency. However, it has struggled due to rising costs, unsustainable cash flow issues and overcapacity at the Uddingston facility, ultimately leading to the company entering administration.
FRP Advisory partners Tom MacLennan, Callum Carmichael and Michelle Elliot were appointed as joint administrators. Carmichael commented: “Dawnfresh is a high profile and highly regarded seafood business with a long tradition of supplying innovative products to a blue-chip customer base.”
“Unfortunately, the business has been unable to overcome very serious financial problems at the Uddingston facility, but we are pleased to have secured a prompt sale of the Arbroath facility in a deal that will also preserve substantial employment in the town.”
“Our focus is now on finding a buyer for the farming business whilst also realising as much value as possible from the other assets for the benefit of creditors.”
View the latest distressed UK businesses here.
An established and well-regarded seafood restaurant and fish & chip takeaway is available for purchase in a sought-after residential area of Herefordshire.
LEASEHOLD
This outstanding pub and restaurant in Dennyloanhead boasts a prime roadside location and has been recently refurbished to an exceptional standard.
FREEHOLD
This is a remarkable opportunity to acquire a highly regarded bar and restaurant in Glasgow's bustling West End, featuring a prominent trading position and a stylish interior designed to a high standard.
LEASEHOLD
Please choose your settings for this site below. For more information please read our Cookie Policy
These cookies are necessary for our website to function properly and provide you with access to all features.
These are analytics cookies that help us to improve the way our website works.
These are used to improve the functional performance of the website and make it easier for you to use.