Staff made redundant as egg firm falls into administration

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.

Welcoming offers​

“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.