Curry

Own-label ethnic ready meals business S&A Foods has appointed administrators following the end of a deal to supply Asda.

The retailer was the main customer of the Derby-based supplier, which yesterday [27 October] told its 350 staff that administrators from Deloitte had been appointed after management failed to find a buyer for the business.

S&A Foods founder and CEO Perween Warsi, who was awarded the CBE in 2002, said the end of the supply deal with Asda was “the root cause” of the collapse of the business.

“Now is not the time for recrimination, but the harsh reality is that we simply could not run a financially viable business on the revised terms offered by Asda,” added Warsi.

Asda told The Grocer it was “saddened” to see S&A Foods enter administration, and claimed it had committed to supporting the business over the next 12 months. ”But we have been informed production will cease with immediate effect,” said a spokeswoman, “and are now working with alternative suppliers to ensure limited impact on our customers.”

Warsi set up the business after moving to the UK from India in 1975 and being disappointed by the lack of authentic Indian food.

“My heart goes out to all my colleagues at S&A Foods who have shown commitment and loyalty to me over many years, including in the last few days when they have been under immense emotional strain,” she added. “My over-riding priority now is to do all I can to ensure that everyone affected receives as much support as possible.”

In its accounts for the year to 31 March 2014, S&A had described itself “largely dependent upon one retail customer with whom it has a strong working relationship”. The business said turnover for the year had been impacted by the customer consolidating its approach to ethnic ready meals but claimed this would be counterbalanced by expansion of other ready meal lines.