Retail supplier Enterprise Foods goes into liquidation

Glasgow-based retail supplier Enterprise Foods, trading as Localist – The Food Merchant, has reportedly been placed into liquidation and ceased trading on 18 March.

The firm had acted as an agent between retailers and thousands of small businesses including dairy farmers, bakeries and vegetable growers, leaving a major void in the marketplace.

See also: UK food supply chains at risk of major shocks

It was founded in 1994, and prided itself on helping independent local food businesses grow and reach major retail and foodservice customers, delivering over 4,000 products each week.

Communications to suppliers had been very limited in the past week, with orders not being placed and many suppliers not being made aware of the ongoing financial difficulties.

It is unclear at this stage how much money is owed to Localist suppliers.

Food chain Co-op had been supplied by Localist for certain local food products and wrote to its indirect suppliers on 20 March to let them know that it had been informed that Localist had entered liquidation.

However, the Co-op added that it was yet to received formal notice or contact from any appointed liquidator.

The Co-op has offered these suppliers direct contracts under a temporary agreement, paid on 30-day terms.

It has also committed to working with affected suppliers to determine whether a “future direct trading relationship” with Co‑op is appropriate.

Local milk plea

Sheffield-based dairy farmer Eddie Andrew, who supplied Co-op stores in the region with milk through Localist food, praised the retailer for its prompt action.

He said: “It’s fantastic that the Co-op are choosing to buy milk produced on a farm in Sheffield to be sold in the Co-ops in Sheffield, it is exactly what local food is about.

“I really hope in this incredibly challenging time that the Co-op manage to keep the milk on the shelves fairly seamlessly because that would help customers out and it would definitely help us out.

“Otherwise, I’ve got to have a think about where that milk is going to go.”

Farmers Weekly has contacted Localist for comment.