Andrew Peters, Dominic Wong, David Langton and Nick Edwards of Deloitte, Birmingham were appointed as Joint Administrators to MBN Bomford Limited, Bomfords Limited, W Bailey Limited and GF Produce Limited on 22 June 2007.

The Group is a leading supplier of fresh produce, providing legumes, spring onions, asparagus and sweet potatoes to the major supermarkets and other retail multiples. It has a turnover of c£150 million with c2100 employees (including seasonal labour).   

It operates from 5 principal locations:

• Atherstone, Stratford Upon Avon - head office and pack house (390 employees)
• Luddington, Stratford Upon Avon - UK farming operations and farmland (520 employees)
• Salford Priors, Worcester - pack house (570 employees)
• Purfleet, Essex - pack house specialising in imported produce (230 employees)
• Gravesend, Kent - grower and pack house specialising in spring onions and radishes (390 employees)

Bomfords Prepared Limited, another subsidiary with 120 employees, is engaged in the supply of prepared food services and products from Pershore in Worcestershire, is not in administration and continues to trade normally. The group's 75% shareholding in this business is available for sale.

The failure of the Group has been attributed to significant cost over-runs in the recent construction of a new pack house and administration building at Atherstone, Stratford Upon Avon, together with the start up investment for the Bomfords Prepared Business, both of which have adversely impacted upon cash flows. In addition, the Group has made two recent acquisitions where integration benefits have been slower to arise than anticipated. 

Dominic Wong, Partner in Deloitte’s Reorganisation Services practice, said:

"The Group has a strong market position, with a UK market share of approximately 25 - 55% across its various principal product categories. It is profitable and has an enviable customer base".

"Unfortunately, the capital expenditure overrun on the Atherstone facility was significant and could not be met from cashflows. However the facility is now complete and operational and the recently established Bomfords Prepared business is also now profitable. Recent acquisitions have been substantially integrated".

Andrew Peters, Partner in Deloitte's Reorganisation Services practice, said:

"The Administrators have already been contacted by a large number of interested parties and the businesses are continuing  to trade as normal whilst the Administrators seek either the rescue or sale of the Group".

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