The administrators who took over stricken frozen pizza maker Paramount Foods last month have announced the company will be closed after talks with a potential buyer collapsed.
Today the Joint Administrators have announced to stakeholders and employees of the Companya phased wind down of operations.
Advanced discussions regarding a sale of the business as a going concern had been held with an interested party, who, for reasons outside of their control has had to withdraw their offer.
We would like to take the opportunity to thank the employees for their continued support throughout the Administration process and we will offer support where required to staff involved as the business winds down.
– Duff & Phelps
The company currently employs 78 people at a site in Salford, Greater Manchester, and 202 at Deeside, Flintshire.
A further 41 redundancies have today been made at Paramount Food Limited's Deeside premises. The amount of redundancies have now reached 173 across the company’s two sites, 41 in Salford and 118 in Deeside. with 14 salaried redundancies across the two sites.
"Order volumes have fallen and the Company’s declining turnover cannot sustain its existing level of overheads. Further redundancies were required...in order to enable continued trading in the short term whilst a purchaser is sought".
– DAVID WHITEHOUSE, PARTNER, DUFF & PHELPS, JOINT ADMINISTRATORS
Meetings with administrators will take place today to discuss the future of the frozen and chilled pizza company in Deeside, North Wales.
Paramount Food Limited announced yesterday that they were suspending operations, and seek a buyer urgently in order to save 312 jobs at the site. There are a further 138 jobs being fought for at their Salford site.
The announcement comes after the recent loss of a major customer.
Paramount Food Limited has suspended operations as it announced it is seeking a buyer urgently in order to save 450 jobs.
The company brought in joint administrators on 5th October 2012 and discussions are being held with key customers and parties who may be interested in acquiring some or all of the business.
The Company is one of the largest manufacturers of frozen and chilled pizzas in the UK, supplying some of the biggest supermarket names. It employs 138 people at a site in Salford, Greater Manchester and a further 312 who are based in Deeside, North Wales.
Whilst the Company has incurred trading losses historically, the recent loss of a major customer has left the Company without any prospect of returning to profitability in line with a turnaround plan embarked upon in July this year.
– David Whitehouse, Partner at Duff & Phelps, Administrator