Contract manufacturer Sauce Shed has ceased trading ahead of a winding-up hearing brought by clients.
The Grocer revealed in May how the condiment manufacturer had been slapped with a winding up petition brought by former client Jamie Cleland as a way of reclaiming a refund he believed his business Big Jim’s Kitchen was owed after repeated quality issues with orders. The petition has since been taken on by 12 other claimants, with a final hearing set for 7 October.
However, Sauce Shed founders Oliver Tempest-Reynalds and David Perrett have notified customers the business is “no longer able to continue trading”. As a result it will not oppose the winding-up petition and plans to appoint an independent insolvency office-holder to “take control of the company’s affairs”.
“This is not the outcome anyone connected with Sauce Shed wanted, and we appreciate that this announcement will come as a disappointment to many customers, suppliers and partners who have supported us over the years,” a statement said.
“Over the past year, the business has experienced a series of significant challenges which, despite every effort, have ultimately resulted in the company becoming unable to continue operating.”
It leaves claimants facing uncertainty over whether they will be able to recover funds they claim they are owed.
Bedford-based Sauce Shed provided contract manufacturing and product development services for small food and drink businesses.
The Grocer has directly spoken with eight former Sauce Shed clients and is aware of at least 23 companies who allege Sauce Shed took thousands of pounds in upfront payments for orders which it then failed to provide, or delivered with significant quality issues.
Sauce Shed acknowledged ‘significant challenges’
Sauce Shed founders Tempest-Reynalds and Perrett have always denied any wrongdoing. In their statement they apologised to customers and acknowledged that communication “fell well below the standard you deserved” after Tempest-Reynalds stepped away from the business due to family circumstances.
“Unfortunately, the breakdown in communication contributed to a loss of confidence in the business at a time when it was already facing significant financial challenges,” the statement continued.
“As uncertainty grew, so too did speculation, misinformation and serious allegations about the company and its directors. Whilst we fully understand the frustration experienced by customers awaiting products or refunds, a considerable amount of inaccurate information also circulated publicly, further damaging confidence in the business at a time when we were working to stabilise it,” the business said.
Sauce Shed was visited by Trading Standards officers in June, which resulted in no further investigation. However, its ability to trade was “severely restricted” after its bank accounts were frozen following the launch of the winding-up petition, alongside a further county judgement.
“Our final opportunity to continue trading ended when Bedfordshire Borough Council exercised its rights under our lease and repossessed our production premises due to unpaid rent. The locks have now been changed, and the company no longer has access to its manufacturing facility,” the business said. Bedfordshire Borough Council had taken possession of any unclaimed stock.
The business has since suspended its company email address. Both of its websites are also currently disabled.
The Grocer has approached Sauce Shed for comment.
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