Hopes rising for 200 staff at food firm facing axe

Oct 22 2008 by Peter McCusker, The Journal

HOPES are rising that 200 employees at a Northumberland town’s major employer will still be in work next year after its administrators said they were hopeful of selling the factory to new owners.

Cheviot Foods in Amble was placed in administration at the end of September, threatening the future of the staff at the factory which has been a mainstay of the town’s economy for years.

Rising raw material and fuel costs had forced company owners to seek administration, with the administrators saying September would be a crucial month in determining if it had a long-term future.

Nick O’Reilly, a client partner at Vantis Business Recovery Services, said he was in talks with various parties and was hopeful that a sale will be forthcoming in the new year.

He added: “The business is continuing to trade and we are continuing to discuss a sale with various parties. It will be after Christmas before we are likely to conclude a sale.”

The factory, which many in the town still refer to under the name of its previous owners Jus-Rol, was established in Amble in 1974.

The Prize Food Group stepped in to buy the factory when Jus-Rol pulled out in 1998 and changed its name to Cheviot Foods.

Until it was placed in administration, Cheviot Foods traded as an independent business although it had common shareholders with the Prize Food Group.

In September Mr O’Reilly said there could be significant redundancies if he could not upwardly renegotiate prices with its supermarket customers.

With this successfully achieved and raw material and fuel costs falling sharply in recent weeks it appears the factory may have a future.

The upbeat message from the business has been filtering through the town.

Coun John Hedley, chairman of Amble Town Council, said he was aware that the company had orders to fulfil for the festive period which would secure work until Christmas.

He continued: “There appeared to be a question mark after that but, I have heard and some of the councillors have also heard, a sale now looks likely and it appears to be good news for workers.

“It’s still a very vital employer in Amble. If not the biggest, it is one of the biggest and it has always been looked upon as a good employer over the years.”

It is the largest privately-owned volume frozen food processor in the UK supplying some of the major supermarket chains, and has an annual turnover of around £20m.