October: Bernard Matthews’ takeover: suppliers’ uncertainty
By James Ridler
- Last updated on
The sale of Bernard Matthews to 2 Sisters owner Ranjit Singh Boparan could leave hundreds of businesses out of pocket, and even force some to close, according to industry insiders.
Firms owed money by the turkey producer were left with an anxious wait, after the pre-pack administration sale was confirmed in September.
A pre-pack administration involves only a company’s assets, rather than both its assets and liabilities, being transferred to a new owner.
Clarke Willis, group chief executive of Anglia Farmers, described the potential fallout as “fairly massive”, adding that he knew of suppliers that were owed “hundreds of thousands of pounds”.
“Businesses [like Bernard Matthews] have got a lot of smaller suppliers that rely on them. There will be a raft of smaller individual businesses doing plumbing, electrics, van repairs and so on – and £10,000 to some of them will be major,” Willis explained.