All 18 staff at the Chard, Somerset business have been made redundant, with administrators from accountancy firm Mazars – Tim Ball and Mike Field – appointed on Monday (13 August). Blackdown had ceased trading on 31 July.
In a statement, Mazars said: “A recent proposed sale of the company fell through and, as a result of the extremely warm summer weather, demand for eggs dropped dramatically, which has had a severe knock-on effect on the price of eggs the company could demand, resulting in cash flow difficulties and significant losses being incurred.”
Absence of further funding
In the absence of further funding being readily available, Blackdown’s directors decided that the company had to be placed into administration, according to Mazars.
Commenting on the administration, Mike Field said: “It is sad to see a business like Blackdown Hills Enterprises Ltd fail, as it is a family business that has successfully traded for many years and has become a known brand in its market.
“External factors have impacted this business which, in recent years, has developed a state-of-the-art egg grading, packing and distribution centre in the heart of Somerset.”
With trade significantly dropping off for the egg producer in recent months, the decision to enter administration was made to prevent the position for creditors worsening.
“The administrators are currently seeking a buyer for the business and assets and would welcome offers from any interested parties at this time,” added Field.
Meanwhile, last month, frozen pastry and ready meals manufacturer Freshpack closed with the loss of around 60 jobs, after the business failed to find a buyer.
The company entered administration in June, but low margins in the industry had deterred all potential buyers, according to administrator Durham Dean Advisory.