Frozen babyfood company Babylicious fell into administration late last month but is continuing to trade after completing a management buyout, The Grocer has learnt.

The company, which has listings for its Babylicious and Kiddylicious frozen meals and baby snacks in Tesco, Asda and Ocado, went into administration two weeks ago but came straight back out.

When asked why the company had run into difficulties, founder Sally Preston refused to comment. She was also tightlipped over the details of the MBO but said the company was "trading as normal" and that there were "no issues". Administrators Tenon Recovery were also unavailable for comment.

However, a rival claimed Babylicious's sales had suffered during the recession. "It is no secret Babylicious has been struggling during these tough times, but I am surprised it had to go into administration," she said.