FRP Advisory partners Chris Stirland and Philip Watkins, and FRP Advisory director Nathan Jones were appointed as joint administrators.
The Company continues to trade while the joint administrators seek a purchaser for the ongoing business.
The Company employed 40 staff at the point of entering administration and the joint administrators have started an employee consultation that is likely to result in the Company’s total staff numbers being reduced.
Chris Stirland, partner at FRP Advisory, and joint administrator to the Company, said: “Q Cold was a solid, profitable company that specialises in suet production alongside a packaging operation but which only recently has had to bear a sharp deterioration in its trading conditions. The Company suffered from the recent termination of a key supply contract with a major customer which had accounted for around half of the Company’s turnover. The supply contract termination, together with an ongoing dispute with HMRC relating to the reimbursement to the Company of overpaid VAT monies relating to that supply contract, has put a squeeze on cash flow.
“By entering into administration, the Company can continue to trade while the joint administrators seek a buyer for the ongoing business, whilst securing the positions of creditors. Regrettably, given the reduction in income, it is necessary for the Company to reduce operating costs and an employee consultation is under way.”
© FoodBev Media Ltd 2024