New bosses can't say every job will be safe

Feb 4 2009 By Brian Daniel, The Journal

BOSSES who saved a Northumberland food factory from closure last night refused to guarantee the long-term employment of all 190 staff.

As reported in yesterday’s The Journal, Cheviot Foods at Amble was rescued by a team of its directors on Friday night, hours before a deadline set by administrators for its sale to be completed, or the factory would close.

The future of the company, now to be known as Northumberland Foods Ltd, had appeared very bleak after Country Chef Ltd pulled out of a deal to buy the firm earlier in the day.

The deal for Amble’s biggest employer, which went into administration last September, was funded in part by regional development agency One North East, which provided £440,000.

Northumberland County Council also gave £45,000 which allowed the factory to run a week beyond the original sale deadline of January 23.

Staff were briefed on the takeover yesterday, but speaking at a Press briefing earlier in the day, the new bosses refused to guarantee the jobs of its near 200 workers in the long term.

Managing director Peter Kirkham said: "It will be the vast majority. We want everybody to understand that it went into administration for a reason. There will be changes but changes for the long term."

Mr Kirkham had earlier told how the management buyout had been planned earlier in the company’s administration period, but had been put on hold when it appeared Country Chef Ltd was to buy the factory.

However when that sale fell through on Friday, the directors were asked by the administrators Vantis Business Recovery Services to resurrect the deal to save the firm.

The deal was completed ay 9.30pm that night, two-and-a-half hours before the deadline which would have seen the plant close on Monday. The new company’s commercial director David McLaughlin told how the deal with Country Chef fell through.

He said: "We knew they had some difficulties, exactly what they were we can not comment on.

"We are happy that we were able to resurrect our management buyout quickly, we were able to come back to the table as quickly as we did. f we had not of signed it off the place would have closed."

Mr Kirkham spoke of his "absolute delight" at taking over the business, with he and Mr McLaughlin speaking of a comprehensive plan for the business.