Marts and farmers £3m out of pocket after Mutchmeats collapse

Livestock auction marts, farmers and other unsecured trade creditors are more than £3m out of pocket following the collapse of Oxfordshire-based abattoir Mutchmeats.

The abattoir was placed in administration on 16 September and its property and assets immediately sold to an associated company, SMS Food Group (SMSFG), in a “pre pack” deal.

See also: Struggling Oxfordshire abattoir Mutchmeats sold to new owners

The proceeds of that sale – some £3.15m – were used to help the owners of SMSFG and another financier recoup some of the money they had previously pumped into Mutchmeats to try to keep the business afloat.

According to the administrator’s report, director Nigel Morgan and his family had put in around £8m over five years, with the loans latterly secured against the property and assets of the company.

The company was already making losses – in part linked to the Covid pandemic and cost of living crisis – and these climbed to an estimated £6.7m in 2024 and £1.8m in the first five months of 2025.

Under a restructuring plan, SMSFG and Rural Asset Finance 3 put in another £2.45m, though the money did not come through until August this year.

These loans were also secured against the property and assets of Mutchmeats.

Winding up petition

However, worried by the lack of payment for livestock deliveries and slow progress towards a restructuring/refinancing package, a number of auction companies issued a “winding up petition” against Mutchmeats on 8 August.

This culminated in the company being placed in administration with KRE Corporate Recovery, and the property and assets immediately sold.

The administrator’s report shows that five bids were received, of which the highest, of  £3.15m, was from SMSFG.

“The sale consideration was received in full on completion of the sale, albeit the majority by set-off against secured debt,” says the report.

It adds: “Based on current information, there is no prospect of a distribution to non-preferential unsecured creditors.”

‘Out of pocket’ 

According to the report, there are 99 unsecured trade creditors, who are owed just over £3m.

Among the biggest are Rugby Farmers Mart (£863,000), Voyce Pullin Markets (£501,000), Penrith and District Farmers (£297,000), Northallerton Auctions (£159,000), Harrison and Hetherington (£99,000), Hopes Auction Co (£85,000), Mitchells Auction Company (£83,000), and Welshpool Livestock Sales (£77,000).

There are also many individual unsecured farmer creditors, with unpaid invoices ranging from a few hundred to many thousands of pounds.

SMS Farming is also listed as an unsecured creditor to the tune of £2.1m.

The secured creditors are estimated to be out of pocket by some £6.7m.