Dairy Farmers of Britain is to close the Bridgend creamery after the business failed to attract a buyer.
PricewaterhouseCoopers’ Stephen Oldfield, who is receiver and manager of DFoB, said the closure would take place over Friday and Saturday (12-13 June).
The closure affected the main creamery in Gwent and negotiations were continuing with various parties to sell depots at Neath, Cardiff, Ebbw Vale and Bridgend, which were associated with the dairy.
“The principal objective has been to keep the business running while decisions were taken about its future,” Mr Oldfield said.
“The next objective was to ask the customers to support the business with continued orders and a fair price for the milk.
“Unfortunately, the loss of some of the key customers since the appointment has resulted in the Bridgend business making significant losses.
“Interest from potential acquirers consequently dried up,” he said.
The closure means 279 staff will lose their jobs and paid all arrears of pay up to and including the day they leave the site.
They will receive redundancy up to the statutory limits.
“There is, of course, much concern given the number of jobs involved, but the extent of the continuing losses and the lack of a credible, funded buyer made the decision to close, unavoidable.
“The employees have been told the news and I thank them for continuing to trade the business despite the significant level of customer withdrawal over the course of the past week. They have remained professional throughout and have agreed to assist me with closure.”
Customers requiring urgent supplies should contact the public services care line on 0800 834 823.
- DFoB member? Distressed or troubled about what the news might mean for your business? Don’t suffer in silence contact www.farmcrisisnetwork.org.uk