Beleaguered milk processor Dairy Farmers of Britain has been thrown into further turmoil after receivers closed the firm’s plant in Blaydon.

Despite support from DEFRA to try to find a buyer, last-ditch talks between DfoB and its receivers, Pricewaterhouse Coopers, collapsed over the weekend.

The immediate closure, which saw 290 people lose their jobs, followed the closure of the firm’s Lincoln and Bridgend dairies last week (10 June).

DfoB’s managers, Pricewaterhouse Coopers, said negotiations were continuing to sell the dairy’s northeast depots, which employ 329 people.

If negotiations failed, those depots would be closed by Monday (15 June).

Stephen Oldfield, DfoB’s joint receiver and manager, said attempts to sell the dairy had been hampered by recent losses in the liquid milk businesses.

“Closure will avoid further losses being paid for out of farmers’ milk cheques,” he said.

“Customers have also been informed of the closure plans and PwC has contacted local competitors to help them find alternative dairies to supply milk from next week.”

“Meanwhile, we will continue to work hard over the weekend to seek to achieve sales of the depots in order to try to preserve as many of the jobs as we can.”