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 well-established wholesaler and distributor of motorcycle parts in Somerset boasts an excellent reputation and the ability to make next-day deliveries due to its extensive inventory.
A unique opportunity to acquire a long-established, multi-species abattoir business based in South England, known for supplying high-quality meats to butchers and offering both wholesale and private slaughter services.
A leading UK-based distributor of high-quality bicycle components and accessories with strong brand recognition and exclusivity agreements is available for acquisition.
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.