Howard Smith and Rick Harrison from Interpath Advisory were appointed joint administrators of Hider Food Imports Limited on Friday 15 October 2021.
Pressures stemming from the COVID-10 pandemic, coupled with changes to import rules following Brexit, had a materially adverse impact on Hider’s financial performance.
The Company experienced significant disruption to its supply chain and a reduction in demand, as some customers temporarily closed their operations.
Cost reducing inititatives
Prior to entering into administration, Hider implemented several strategic cost reduction and turnaround initiatives, including the sale of the company’s branded wholesale division in May 2021.
However, the company continued to be loss-making, resulting in a significant deterioration of the Company’s working capital position and increased creditor pressure. Due to this, the directors took the decision to place the company into administration.
Immediately following Interpath Advisory’s appointmentment, the joint administrators sold the business and assets to a newco. While the company was able to save 32 members of staff, 15 employees have been made redundant.
Safeguard a majority of jobs
Howard Smith, managing director at Interpath Advisory and joint administrator, said: “We’re pleased to have been able to conclude this transaction which not only safeguards the majority of jobs, but which has allowed for the sale of the business without impacting the continuity of business operations.”
Meanwhile, last month, chilled food logistics business EVCL Chill Ltd – including EVCL One, EVCL Two and EVCL Three – entered into administration after struggling with challenges created by the heavy goods vehicle driver shortage, which placed more than 400 jobs at risk.
The Alfreton, Derbyshire business was reported to be cash generative in December 2020, with a turnover of more than £167m. However, EVCL Chill struggled with a loss of a number of key customers and acute driver shortages during 2021, which created significant liquidity challenges.
Sale options were explored, but generated limited interest, leading management to make the decision to enter administration.