Meat processor Cleveland Meat Company has gone into administration.
The company is a big regional meat buyer at northern markets and direct from farm. It served a wide range of customers, including killing stock for other butchers and processors.
Farmers and livestock markets are expected to be among the largest creditor groups.
Steven Ross and Allan Kelly of Newcastle-based RSM Restructuring Advisory were appointed joint administrators to the family run business on 24 July.
Cleveland Meat Company was formed in 1973 and had an annual turnover of about £38m. It operated an abattoir and boning facility in Stockton-on-Tees supplying meat to wholesalers across the UK and Europe.
“The company ceased trading shortly before our appointment and the majority of employees were made redundant last week,” said Steven Ross, partner at RSM Newcastle and joint administrator.
“Regrettably, it has not been possible to recommence trade and we are working with the stakeholders of CMC to ensure that we generate as much value as possible for the creditors.”
The RSM team had been on site to assist employees in making claims to the Insolvency Service for any amounts owed to them, and dealing with creditor queries, said Mr Ross.
The business employed 68 people.
Markets are unwilling to talk about their level of exposure. For the Livestock Auctioneers’ Association, secretary Chris Dodds said the Cleveland Meat Company supplied a large range of customers and killed on behalf of other meat businesses, handling mainly prime cattle and cull cows.
Aside from the financial impact on unsecured creditors among auction markets and farmer suppliers, this represented the loss of a significant regional operator providing competition for stock, said Mr Dodds.
Anyone with an interest in the assets is asked to contact RSM on 0191 255 7000.