King Foods, which traded as Foodstore Ltd, supplied frozen foods, fresh fish products, dry goods, and fresh and frozen meat to hotel and retail catering businesses. The Aberdeen-based company's customers were mainly across the north-east of Scotland, Stirling and Edinburgh. 6 million.
However, King Foods posted a pre-tax loss of £360,000 for the year ending February 2024, compared with £197,000 profit the previous year. King Foods had experienced 'adverse trading for a number of years' according to administrators appointed on Thursday. The company's directors decided to cease trading in mid-February after losses and cash flow pressure.
Steps were taken to file for the appointment of administrators after ceasing trading. Joint administrators Geoff Jacobs and Alistair McAlinden from Interpath were appointed on Thursday. Administrators Interpath said that with no prospect of trade resuming, the company's 41 members of staff had been made redundant.
They said that with no prospect of trade resuming, it was with regret that the staff had been made redundant. King Foods stated that all 41 staff at the firm have lost their jobs with immediate effect. The firm serves businesses across the north-east, Stirling, and Edinburgh, but ceased trading in mid-February following mounting losses and cash flow troubles.
The exact reasons for the directors' decision to cease trading in mid-February beyond general losses and cash flow pressure have not been disclosed. ' What specific 'rising costs' or 'significant headwinds' led to King Foods' financial troubles remains unclear. King Foods was a family-run business according to its website.
King Foods was founded in February 1994 with the aim to provide a quality frozen product at a fair price in an express manner. Founded in 1994 by John King, the business supplied hotels and catering firms across the east of the country. John King junior took over as director after his father, King Sr, the founder and sole director, passed away in 2024.
' What support is being provided to the 41 redundant employees, and are there any reemployment prospects has not been detailed. Interpath will now commence the process of marketing the Company's business and assets, including its fitted cold storage facility in Aberdeen, its vehicle fleet and other properties. King Foods' remaining assets, including its cold storage facility, vehicle fleet, and other property, are now being marketed for sale.
The timeline for selling King Foods' assets and how much is expected to be recovered is not yet known.