Wed, 27 May 2020 | ADMINISTRATION
Adelie Foods, one of Britain’s biggest suppliers of sandwiches and food-to-go, has appointed administrators as the coronavirus pandemic continues to impact the food sector.
The company had been in rescue talks for several weeks, but a potential acquisition by an unnamed company couldn’t gain the necessary support from watchdogs in time, according to insiders. It has now appointed Deloitte to undertake an insolvency process, with employees having been informed of the development Tuesday afternoon.
It has been reported that Deloitte is assessing whether it will be able to produce a deal to save Adelie from administration. The company is reported to have been in talks over a deal with listed food supplier Greencore, while Samworth could be another contender.
Adelie, which is headquartered near Heathrow, employs over 2,000 staff, a large amount of whom have been placed on furlough since March due to the coronavirus pandemic. The company’s clients include coffee chains such as Caffè Nero and supermarkets including Lidl.
Before appointing administrators, the company had been owned by its former lender Intermediate Capital Group, which took ownership of Adelie in 2016 after it lost contracts with J Sainsbury and Asda.
Joint administrator Rob Harding, a restructuring partner at Deloitte, said: "The current pandemic is having a devastating effect on consumer-facing businesses and suppliers into them, such as Adelie.”
"The impact of COVID-19 on the Company's order book resulted in a material funding requirement and, as a result, we have been working hard with Adelie's management to try and secure a buyer to ensure the right longer-term future for the business."
In its latest available accounts, to the year ending September 30 2018, Adelie Foods registered an EBITDA loss of £2.96 million. However, its revenue saw 10 per cent growth compared to the previous 12 month period, from £225.7 million to £248.5 million, following new business in food service and convenience and an 11 per cent growth in its URBAN eat brand. At the time, the company reported fixed assets of £13.8 million and current assets of £63.7 million.
Reputable brewery founded over a decade ago. Offers a variety of premium-quality ales, lagers and beers that are available in casks, kegs, cans and bottles.
LEASEHOLD
This unique hospitality venue has been family run for 30 years and sits in an enviable position overlooking one of East Devon’s most popular beaches.
LEASEHOLD
An amazing restaurant / cafe / tea room business built over the last eight years and trading phenomenally well. Rarely do we see this type of venture attracting such a high volume of trade.
LEASEHOLD
|
13
|
|
May
|
Shopping centre business put up for sale | BUSINESS SALE
A West Yorkshire shopping centre that sees up to 5 million c...
|
13
|
|
May
|
Assets up for sale as Scottish grain merchant falls into administration | ADMINISTRATION
East Lothian-based grain merchant Alexander Inglis & Son has...
|
12
|
|
May
|
Sassoon Academy to appoint administrators | ADMINISTRATION
Hairdressing school Sassoon Academy has revealed that it is ...
Sign up to receive our acquisition alert emails to get your FREE guide
|
01
|
|
Dec
|
Arcadia collapses into administration | ADMINISTRATION
Sir Philip Green’s Arcadia, the group behind retailers...
|
15
|
|
Oct
|
Gourmet Burger Kitchen acquired by Boparan in deal that sees 26 sites close | BUSINESS SALE
Gourmet Burger Kitchen has been acquired by Boparan Restaura...
|
23
|
|
Sep
|
Cartwright Group enters administration, but fleet and rental arms are sold | ADMINISTRATION
Commercial trailer manufacturer and rentals firm Cartwright ...
Business Sale Report is your complete solution to finding great acquisition opportunities.
Join today to receive:
All this and much more, including the latest M&A news and exclusive resources