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English Frozen Foods Deal Collapses

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English Frozen Foods Deal Collapses

January 27
12:02 2011
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The sale of the Northumberland Foods factory at Amble by the administrators to Newcastle-based frozen foods company Longbenton Foods has collapsed. Before falling into financial difficulties, Northumberland Foods was manufacturing frozen vegetable products for clients including Tesco, Sainsbury and Iceland at its factory at Amble. It also had a second factory at Morpeth.

Longbenton Foods appeared to have acquired the assets, land and buildings previously owned by Northumberland Foods in Amble from the administrators Begbies Traynor. Indeed, the site at Amble had restarted production with 70 former staff being re-employed.

However, although contracts were exchanged and a deposit paid, the deal has now fallen through as Longbenton has failed to pay over the balance despite being granted a number of extensions to the original deadline.

When Longbenton Foods again failed to raise the necessary funds to complete by December 22nd 2010, the administrators served a notice to complete, which has now expired with the Longbenton Foods still not in a position to complete.

The administrators consequently decided, given Longbenton Foods’ continued inability to raise the necessary funding to complete the transaction, to rescind the contract.

Begbies Traynor is now pressing ahead with the marketing and sale of the business, including its plant and machinery and the property situated at Amble. It is hoped that a purchaser can be found who is able to recommence production in Amble and the administrators are eager to talk to any interested party and will work with the local council so that the jobs which the business previously provided can be restored.

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