Enterprise Foods Limited, which traded as Localist and was based in East Kilbride, has collapsed into liquidation after 35 years in business. George Lafferty of BTG was appointed provisional liquidator on Wednesday after a petition was lodged by the company. The company fell into financial difficulty after failing to refinance debts of more than £5 million, with cash-flow problems that built up over several years linked to debts from customer failures and worsened by challenging market conditions in retail and hospitality, though the specific customers and exact market conditions remain unclear.
Thomas McKay, managing partner of BTG in Scotland and Northern Ireland, said staff are being supported following the collapse. He noted that the directors had made efforts to restructure the debt to save the business and jobs, but the loss of jobs was inevitable when this was unsuccessful. McKay added, 'There are many small suppliers owed money, and the loss of this route to market will have a serious knock-on effect on these food producers,' though the exact amount owed to small suppliers is not specified.
BTG is working to assess all claims and establish whether there will be any dividend paid to unsecured creditors, but it is not likely to be significant due to the level of secured debts, with the total value of assets to be sold still undetermined. Separately, Eastern Airways, a UK airline in business since 1997, plunged into administration after first suspending operations in October. All of Eastern Airways' flights were cancelled as a result of the administration.
Administrators said Eastern Airways was left with a cost base that was too high to be sustainable after a contract to operate services for KLM was ended, with the current status of the administration process and potential outcomes for creditors and employees not yet detailed.