Troubled egg packer Blackdown Hills Enterprises has formally entered administration after ceasing to trade at the end of July.
The company, which in its latest financial results posted a turnover of £11.1m and employed 18 people, was based in Chard, Somerset, and traded nationally.
The administrators, Mazars, said a proposed sale of the business had fallen through. It also cited low egg prices creating cashflow difficulties and “significant” losses being incurred as a result.
Blackdown was supplied by some 17 farms on contract, most of which are understood to have found alternative arrangements for their eggs.
Assets for sale
It leaves the company’s core assets for sale, which include an egg grading, packing and distribution centre with office, a grading and packing line with 170 cases/hr capacity (30 dozen eggs/case), three hen sheds (c6,000, c6,000 and c16,000 capacities, respectively) with associated equipment, a cleaning shed, a storage shed, plant and equipment, vehicles, a customer list, trading name, goodwill/ intellectual property and website.
Mike Field of Mazars LLP said: “It is sad to see a business like Blackdown Hills Enterprises Limited fail, as it is a family business that has successfully traded for many years and became a known brand in its market.”
Run out of cash
“External factors have affected this business, which has in recent years developed a state-of-the-art egg grading, packing and distribution centre in the heart of Somerset.
“Unfortunately, given a very significant drop-off in trade in recent months, the company has run out of cash and the directors had to make the difficult decision to enter administration to prevent the position for creditors worsening. The administrators are currently seeking a buyer for the business and assets and would welcome offers from any interested parties at this time.”