PoleStar Foods staff demand answers from Privet Capital

By Elaine Watson

- Last updated on GMT

Related tags Finance Investment

PoleStar Foods staff demand answers from Privet Capital
Angry staff at PoleStar Foods’ desserts factory in Okehampton are looking for answers from bosses as to why they are now out of a job just weeks after being told the site’s future had been secured “for many years to come”.

PoleStar Foods was formed in late 2009 following the acquisition of Heinz’s UK frozen desserts business but quickly ran into financial difficulties.

Things came to a head last November when Privet Capital - an expert in ‘turnaround private equity funding solutions’ - said it could secure the future of its factory in Okehampton but not the factory at Leamington Spa, which has just closed with the loss of more than 160 jobs.

However, earlier this week, 232 workers at Okehampton were also made redundant,​ prompting a flurry of calls and emails to this publication.

Appalling treatment

One source said: “They need to explain why we have all lost our jobs.”

Another added: “You also have to also spare a thought for all those companies who have supplied PoleStar with raw materials and have not been paid and are looking at big financial losses.”

A third added: “It is appalling the way that the workers have been treated. I haven't been paid for the last two weeks. How do they expect me to live?

“Two months ago Privet were saying they were heroes for saving jobs. Two days after that they put the Leamington factory into administration and now Okehampton.”

Hopes that staff can be re-employed under new ownership

Privet Capital declined to comment on rumours that restructuring, recovery and insolvency specialist FRP Advisory was going to serve as an administrator to the firm, but added: “Privet is a turnaround investor and is trying its very best to turn things around in a very difficult situation.

"We are working towards an outcome where a buyer can be found for the operation in the hope that some staff can be re-employed under new ownership.”

FRP Advisory said: “We are providing advice to PoleStar Holdings Ltd but we have not been appointed as administrator.”

Speaking to FoodManufacture.co.uk in December, Privet director Ian Astley said that Privet’s investment would support PoleStar’s working capital requirements at Okehampton.

He added: “It will also provide the company with a renewed focus, increased financial strength and a clear strategic plan, thereby ensuring that it is well-placed to continue as one of the UK’s leading manufacturers and providers of frozen desserts for many years to come.”

Related topics Frozen

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3 comments

Disgraceful

Posted by Tracy,

How can Privet Capital, Polestar and Heinz get away with the appalling way they have treated loyal staff and not answer any emails with questions?

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A murky business

Posted by Billy,

Chris White , MP for Leamington , has been approached. However, he declared his inability to do anything. Whilst this may be the case in this instance surely the role of an MP is to look at the legislation that allows such murky business dealings to happen . Hopefully the MP for Okehampton will be more receptive .

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Where are the Polestar directors??

Posted by Mubarik Chowdry,

It’s strange that the directors of PolesStar Foods were already happily working in other companies. How on earth were they going to take PoleStar Foods seriously!!

H.J Heinz Foods Ltd, PolesStar Foods Ltd and Privet Capital should all be put under an investigation and we all should start by approaching our local MPs & busniess secretary.

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