Potato grower Fylde Fresh & Fabulous Group has rescued veg processor Troy Foods from administration.
Based in Leeds, Troy Foods Ltd is a fourth-generation family business supplying prepared vegetables, dressed salads and mayonnaise.
A total of 104 employees transferred to Fylde Fresh as part of the transaction, which The Grocer understands to have been a pre-pack deal.
Recovery firm Interpath Advisory managed the administration.
Related business Troy Foods (Salads) Ltd was not part of the deal and continues to trade under its existing management and ownership.
Established in the North West in 2005, Fylde Fresh supplies a range of peeled potato products to ready meal manufacturers, the foodservice sector and more 500 fish & chip shops. It also supplies heat and electricity to more than 600 homes through its biogas plant near Preston.
Interpath director Neil Morley said: “We are pleased to have concluded this transaction, which secures the future of the business by providing a new platform upon which it can move forward.”
Fylde Fresh director Colin Bradley added: “We have known and respected Troy Foods for many years. It is a natural fit for our already established business.”
The reasons behind the administration remain unclear, but Troy Foods Ltd sank £1.4m into the red on revenues of £19m in the year ended 26 September 2021, according to the last available accounts on Companies House.
The business’ carrot crop was hit by persistent wet weather and the resulting scarcity of supply and cost inflation led to “a major erosion” in margins, the accounts showed.
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