Fri, 13 Aug 2021 | ADMINISTRATION
Administrators from Interpath Advisory are seeking offers for the business and assets of Leicestershire-based world foods manufacturer Simtom Food Products, which has fallen into administration.
The company, which was founded in 1977 and known for its Indian food products including sauces, pickles and chutneys, collapsed as a result of the Covid-19 pandemic. Previously, the business had been investing heavily in expanding its operations, but these plans were derailed by the onset of coronavirus and, more recently, it was impacted by labour shortages.
Prior to the appointment of joint administrators Tim Bateson and Howard Smith of Interpath, the company had made the majority of its approximately 60-strong workforce redundant.
In its most recently available results, for the year ending March 31 2020, Simtom reported gross profits of close to £3.5 million on turnover of £18 million. While turnover and gross profits were both up from £10.2 million and £2.4 million respectively the year prior, the company slid from a post-tax profit of close to £35,000 to a post-tax loss of £568,067.
At the time, the company’s fixed assets were valued at £7.7 million and its current assets at close to £5.1 million. The company owed around £8.6 million to creditors within one year and around £2.9 million to creditors falling after one year, leaving it with net assets of approximately £1 million.
Commenting on the company’s situation, joint administrator Tim Bateson said: "The Covid-19 pandemic has significantly impacted the implementation of Simtom's strategic plans which, when coupled with the recent labour shortages, has had a significant impact on this award-winning food manufacturer.
"Our immediate priority is to support those employees who have been made redundant, providing them with the information and support they need to make claims via the Redundancy Payments Office.
"We will be seeking offers for the business and its assets, and would encourage any interested parties to make their interest known at the earliest opportunity."
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