Scandal-hit British meat supplier Russell Hume has fallen into administration with the loss of 302 jobs.
Last month, production across the company’s sites ceased and products were recalled after an investigation was launched by the UK Food Standards Agency (FSA) into allegations of non-compliance with food hygiene regulations.
A 12-day investigation by the FSA found that the company was labelling meat with the wrong use-by dates, leading JD Wetherspoon and Jamie’s Italian to terminate their contracts with the supplier.
Earlier this month, the FSA lifted restrictions at the firm’s Liverpool plant after confirming the site’s safety management procedures complied with legal requirements.
Headquartered in Derby and operating from six production sites in Liverpool, Birmingham, London, Boroughbridge, Exeter and Fife, the company supplied meat to a number of hotels, restaurants and pubs across the UK.
Chris Pole and Mark Orton from KPMG Restructuring have been appointed joint administrators to Russell Hume.
KPMG partner Chris Pole said: “The recent product recall and halt in operations has caused significant customer attrition and trading difficulties, which in turn has led the directors to take the decision to place the company into administration.
“Regrettably, with little prospect of production restarting on site, a total of 266 people have been made redundant.” A total of 36 members of staff will remain to help wind down the company, but it is expected these too will be lost.
Pole added: “Our priority over the coming days will be to work with all affected employees to provide the assistance they need in claiming monies owed from the Redundancy Payments Office.
“We will also be seeking buyers for the business and its assets. Any interested parties are advised to contact us as soon as possible.”
Earlier this month, the FSA said it would investigate meat cutting premises and cold stores in the UK following several high-profile food hygiene issues over the last few months.
Non-compliance issues were identified at cutting plants operated by 2 Sisters Food Group, which has since announced it will close three factories in the UK, with 900 jobs affected.
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