Lincoln based Tinsley Foods has closed after receivers failed to find a buyer prepared to take it as a going concern. Receivers KPMG said they were surprised the business had attracted so little interest given major customers Marks and Spencer and Safeway had both discussed expanding lines and the facility was in a good location. "We thought this was a business that would sell," said KPMG director Mark Orton. "But buyers were interested in the assets rather than the business." Tinsley supplied pre- packed salads, sandwiches and prepared vegetables to M&S, Morrisons and Safeway. The company's key problem was a lack of automation that put pressure on margins as competition picked up and raw materials prices rose. Joint administrative receiver Myles Halley said that the lack of interest in Tinsley demonstrated a major "lack of confidence in food processing". Most of the 850 staff employed at the firm will be made redundant as receivers wind up the business and dispose of its assets. M&S is talking to existingsuppliers about how it can maintain its supply of fresh produce and vegetarian ready meals lines produced by Tinsley with minimum disruption to customers. Safeway is trying to find another supplier to take on its ready made sandwich business after Tinsley's demise. A spokeswoman said Safeway had been trying to support Tinsley by growing volumes and had "strong plans for its future". {{NEWS }}