Troy Foods Limited – administration

Troy Foods Limited, which was one of the UK’s largest vegetable processing and preparation businesses, employing 198 individuals from leasehold facilities in Leeds and Wakefield, entered administration on 30 November. Neil Morley and Howard Smith of Interpath Advisory were appointed joint administrators. The company struggled with raw material cost inflation and passing the extra costs through to its customers. It has been loss-making over recent years, with an estimated operating loss of £2.3 million in the last fiscal year. The company’s working capital position deteriorated and the business experienced pressure on payment terms from suppliers. Given the increasing creditor pressure and limited prospect of a solvent solution, the directors concluded that insolvency was unavoidable. Immediately following the joint administrators’ appointment, a pre-pack sale of the company’s business and assets was completed to Triple F Chips Distribution Limited for consideration of £260,000. 104 employees were transferred to the purchaser, while the remaining 94 employees were made redundant. Investec Bank PLC and Lloyds Bank PLC each has a registered charge against the company.