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Tuesday, 14 December 2010

Westler Foods in Administration

Westler Foods, based in Malton, has gone into administration after it was unable to finance a £15m funding shortfall in its defined benefits pension scheme.

In a statement the administrators said, "This is an uncommon and unfortunate situation of a well run and profitable business being compelled to enter insolvency specifically because of the scale of its pension deficit." they went onto say, "The company has a number of extremely interesting contracts so we are trading the business as a going concern while seeking a buyer."

The firm employs nearly 200 people at its Yorkshire base making a range of canned and pouched food products.

Pension issues in insolvency have been recently hightlighted in a case brought against Nortel Networks by the Pensions Regulator. We will blog on this case later.

3 comments :

  1. not surprised, they've been laying off good people and now administration to avoid redundancy payments. Lots of ex employees will lose out big time thanks to poor management

    ReplyDelete
  2. who do you contact for information regarding the possible purchase of this business and/or assets?

    ReplyDelete
  3. You would have to contact the administrators

    ReplyDelete

Many thanks for your comments. If you have a private business problem and you want advice give us a call on 0800 9700 539 or email me at keiths@companyrescue.co.uk. If you are a professional advisor with a troubled client, please suggest they visit www.companyrescue.co.uk or contact me as above.

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