Jobs saved at 11th hour
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Cheviot Foods at Amble had been expected to be sold to Country Chef Ltd after being placed into administration.
But the buyer pulled out on Friday – hours before a deadline imposed by administrators after which the factory’s closure would be announced if a sale had not been agreed.
With 190 jobs hanging in the balance, Cheviot Foods’ own directors have now safeguarded the future of the business by completing a deal to buy the factory.
The rescue was assisted by funding from Northumberland County Council and regional development agency One North East (ONE).
The county council provided £45,000 to keep the factory running a week after the original sale deadline, of January 23.
Steve Stewart, council chief executive, said: “I’m delighted that our intervention has helped safeguard around 190 jobs and the long-term security of the plant.
“Without the intervention of the council, the outcome could have been very different. Not only would the loss of almost 200 jobs have had a massive impact on the small community
of Amble, but the knock-on effects would have impacted on the whole supply
chain including local suppliers and customers.”
The agency provided almost £500,000 in funding.
A spokesman said: “We are delighted to have helped secure the future of the company.
“We have worked closely with Northumberland County and Alnwick District councils to ensure that the business has been secured, which is key to the economic future of Amble.
“One North East has offered the new management team £440,000 in support from the Rural Development Programme for England to assist with the purchase of assets and to help safeguard the local supply chain into the company.”
Cheviot Foods, Amble’s biggest employer which is involved in the potato product market, was put into administration amid rising raw material and fuel costs.
Country Chef Ltd, one of the UK’s market leaders in potato products, operating in the value-added sector and based in Scunthorpe, then came forward to buy the plant and safeguard its jobs.
Contracts were exchanged in December for the sale of the business and its assets, and the deal was due to go through on January 9.
The deal failed to materialise with administrators Vantis Business Recovery Services blaming legal problems and issues with would-be funders for the delay.
The two sides held crunch talks on Friday at which both were hopeful the deal could be completed either on the day or over the weekend.
However, Country Chef indicated then the talks could go either way.
An extraordinary county council meeting and Press briefing scheduled for Friday – at which an announcement was to be made on Cheviot Foods’ future – was cancelled.
