Own-label frozen vegetable specialist Northumberland Foods has gone out of business just months after announcing plans to launch its first branded range.

The company, which has closed with the loss of 250 jobs, had been bullish in May when it announced plans for an Ainsley Harriott range of potato products this summer.

At the time, commercial director David McLaughlin said the company was on track to double sales to £50m in three years. However, Northumberland which supplied own-label potato products to Tesco, Iceland and Sainsbury's called in administrators last week after being crippled by cashflow problems.

Administrator Begbies Taynor said negotiations to find a buyer for the £20m business, set up in February last year after Cheviot Foods was brought out of administration by its management, had failed at the eleventh hour.