VBites Foods - Case Update

Former model, entrepreneur and animal rights activist Heather Mills has bought the assets of vegan food manufacturer VBites Foods from administrators 15 years after first buying the company.

The company entered administration on 11 December after facing numerous challenges in recent years, including an increase in operating costs associated with the relocation of its operations in 2021, the impact of rising raw material costs and energy prices, and a reduction in demand for vegan products in the wake of the cost-of-living crisis. James Clark and Howard Smith of Interpath Advisory were appointed as joint administrators.

At the time, Ms Mills said that “corporate greed and poor management” had led to the administration, and has since explained that she felt blind sighted by the decision to call in administrators.

Now, the joint administrators have advised creditors that, following an accelerated sale process, a sale of most of the company’s assets to Vegan Solo Consulting, a company owned by Ms Mills, has completed. The consideration for the sale was £1.0 million. The company’s staff did not transfer as part of the deal.

The joint administrators anticipate that secured and preferential creditors will be paid in full, while unsecured creditors are also expected to receive some kind of distribution.

The joint administrators have been assisted by Ward Hadaway (legal) and BPI Asset Advisory (agents).

Their latest progress report can be found HERE.