Bernard Matthews Gobbled Up by 2 Sisters Foods Group Chief
Bernard Matthews, the UK’s leading turkey producer and the country’s largest poultry brand, has been bought out of administration in a pre-pack deal by Ranjit Singh Boparan, founder and chief executive of 2 Sisters Food Group, Britain’s largest grocery market supplier. Bernard Matthews has been struggling for some time. The company reported losses of approximately £8.5 million in 2013/2014 and for the year ended 28 June 2015 pre-tax losses were £3.7 million as turnover declined from £306.8 million to £276.7 million.
Bernard Matthews recently sold its German subsidiary, Bernard Matthews Oldenburg (BMO), to Union Holdings & Co, with the proceeds being used to reduce Bernard Matthews’ group debt by Eur14 million. Owner Rutland Partners, the specialist turnaround and restructuring investor, then appointed Price Waterhouse Coopers (PWC) to look at possible buyers for the turkey producer. Rutland Partners first invested in Bernard Matthews alongside the existing family interests in 2013.
However, on the 20 September 2016, Deloitte was appointed as administrator of Bernard Matthews along with certain subsidiaries. The subsequent pre-pack sale to Ranjit Singh Boparan is expected to safeguard all 2,000 jobs at Bernard Matthews.
“This famous 65-year old brand had been operating in a challenging market for some time,” points out Dan Butters, who is handling the administration at Deloitte. “We are pleased that all the jobs have been preserved, and the company can make a fresh start with new owners.”
2 Sisters Food Group first entered the turkey market in April 2016 with the purchase of Irish business Grove Farms.
