Fri, 25 Jun 2021 | ADMINISTRATION
AF Biomass, a wholly owned subsidiary of farmer-owned co-operative the AF Group, has announced that it has fallen into administration.
The Norfolk-based straw merchant operates across the whole of England, sourcing straw for the energy, food and farming sectors throughout the year. Much of the straw sold by AF Biomass goes on to be used for animal feed, animal bedding, straw-fired power stations and is even used by British vegetable producers.
Despite this high level of demand and broad range of buyers, a statement released by AF Biomass revealed that the firm had no "realistic prospect" of being able to meet its contractual obligations when it comes to the supply of straw to the power stations.
The statement added that much of the blame for the straw merchant's current circumstances have been put down to the "dramatic" changes seen by the market since the company was created.
"Following a review of AF Group’s strategic plan and in the context of a volatile and fast-changing market, the directors have concluded that AF Biomass has no realistic prospect of being able to meet its contractual obligations to supply straw to the power stations. In these circumstances, the directors have been advised that AF Biomass is insolvent and cannot continue to trade," the statement said.
"It has therefore been decided to appoint administrators to oversee the administration of AF Biomass Ltd," it added. "An inter company debt of £1m owed by AF Biomass to AF Group will not be fully recovered by the administrator. However, AF members who supplied straw in 2021 have been paid."
AF Biomass has contributed more than £800,000 to the AF Group - formerly known as Anglia Farmers - since it was launched in 2013.
This unique business excels in the import and distribution of hairpieces across diverse sales channels, boasting a vast product range designed to look natural for all customer segments. With strong supplier relationships and a multifaceted sales stra...
Take advantage of acquiring a well-established ground working and commodities business in Wales, known for its extensive range of high-quality aggregate and building materials.
Project Zenith offers a prime investment opportunity with its leading position in the production and supply of cooking wine and vinegars across the UK and the Republic of Ireland. The company has built robust relationships with top food organisations...
14
|
Jul
|
PE-backed Compleat group acquires egg products firm | BUSINESS SALE
The Compleat Food Group, a food manufacturing group backed b...
14
|
Jul
|
Online firm acquires assets of skateboard retailer from administrators | BUSINESS SALE
SkatePro, a Danish-headquartered online specialist retailer,...
14
|
Jul
|
Concrete admixture manufacturer moves for waterproofing specialist | BUSINESS SALE
A concrete admixture manufacturer has enhanced its product r...
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
We can help you capitalise on insolvent businesses. We list UK businesses in administration, liquidation and with winding up petitions daily. Ensuring our members never miss out on an opportunity
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.