Middlesbrough biscuit firm falls into administration

Following a series of disputes with its staff over pay and working conditions, the Baked Snacked Company (BSC) has fallen into administration.

Entrepreneur Mobeen Mehdi bought BSC from Zetar, the AIM-listed confectionery firm, in April of last year, and planned to expand the business and recruit more staff. Mr Mehdi claimed that he had secured orders of up to £12 million from national contract manufacturers, private label companies and supermarkets. Customers of BSC include Marks and Spencer and Aldi.

But since then the company has experienced serious cashflow problems, plus teething problems with new equipment, which led to the 100 staff not being paid on time. Following protests by staff, the GMB union threatened to help workers take their cases to tribunal if the situation was not resolved.

Repeated attempts to secure additional funding to meet working capital requirements and financial commitments to former owner Zetar fell flat. Now, the company, which made a range of biscuits and baked snacks, has appointed administrator MCR.

This is the second time the firm has gone into administration. It was first set up as Britannia Biscuits Co (UK) in 2002, falling into administration the following year after being plagued by funding issues.

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