Administrators have been appointed to East Yorkshire-based potato processor firm M&F.
The loss of a significant customer caused the business to cease trading and to make about 90 staff redundant on 10 March, with directors calling in the administrators on 13 March.
Joint administrators are Paul Stanley of Begbies Traynor’s Manchester office and Andrew Mackenzie of the firm’s Hull and Leeds offices.
Nine growers are among the firm’s unsecured creditors owed an estimated £500,000 on Monday (27 March).
Based on estimates at that date, a dividend for unsecured creditors was anticipated, said the administrators.
The secured creditors are finance companies in relation to leased kit on the firm’s site.
M&F, based at Woodmansey near Hull, supplied peeled, chipped and sliced potatoes to retailers and other food processors.
It handled more than 100,000t of potatoes a year and its most recent accounts (to 31 December 2015) show a turnover of almost £9.3m and a loss on ordinary activities of £2,874.
The administrators are looking for a buyer for the processing site.
An unconnected business has permission for an AD plant nearby, which could process waste from the potato operation.