Following sales of the Lubborn Creamery to Lactalis and the cheese factory in Llandyrnog to Milk Link – which secured the transfer of more than 500 employees and continuing customers for in excess of 260 of the cooperative’s farmer members – the receivers were left with attempting to sell the remaining liquids businesses based at Lincoln, Bridgend and Blaydon.
The withdrawal of a key customer forced the receivers to close the Lincoln dairy, with immediate loss of 127 jobs. A similar situation has led to the closure of Bridgend.
“Unfortunately, the loss of some key customers since appointment has resulted in the Bridgend business making significant losses,” said Stephen Oldfield, joint receiver and manager of Dairy Farmers of Britain. “Interest from potential acquirers consequently dried up.”
The receivers continue to have urgent discussions with an interested party over a rescue bid for the Blaydon site. The dairy site employs 290 staff.
Oldfield added: “With a significant number of customers having withdrawn orders, the Blaydon site is operating at much lower volumes, but still has a traditional customer base. There has been support from the One North East regional development agency and central government department Defra to see if a rescue can be achieved. We will be working over the weekend to see if a deal can be driven over the line by early next week. Nothing is certain, but everyone is trying very hard to see a rescue concluded.”
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