Tue, 14 Aug 2018 | ADMINISTRATION
Egg producer Blackdown Hills Enterprises Limited has been placed in administration, citing substantial financial losses as the reason for its struggles.
The business, located in Chard, Somerset, ceased trading on 31 July 2018 due to the unusually high temperatures experienced across the UK this summer, forcing the price of its produce to fall significantly.
It is understood that the company was contractually supplied by roughly 17 farms, who have since sought alternative arrangements for their eggs.
Auditing and accounting firm Mazars LLP have been called in, with partners Tim Ball and Mike Field appointed as joint administrators.
In a statement issued by Mazars, the administrators said: “A recent proposed sale of the company fell through and as a result of the extremely warm summer weather, demand for eggs dropped dramatically which has had a severe knock on effect on the price of eggs the company could demand resulting in cashflow difficulties and significant losses being incurred as a result.”
A family business trading for years, Blackdown Hills Enterprises was established in 2004 by Kenneth Cottey. With nationwide trading networks, the company has become a well-known brand and achieved a £11.1 million turnover in the year to October 2017.
Field commented: “External factors have impacted this business which has, in recent years, developed a state-of-the-art egg grading, packing and distribution centre in the heart of Somerset.
“Unfortunately, given a very significant drop off in trade in recent months, the company has run out of cash and the directors had to make the difficult decision to enter administration to prevent the position for creditors worsening.
“The administrators are currently seeking a buyer for the business and assets and would welcome offers from any interested parties at this time.”
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