A deal to sell failed supplier Northumberland Foods has collapsed.
Northumberland, which supplied frozen potato products to Sainsbury’s and Tesco, fell into administration last year.
A sale of the company was lined up last October, with Longbenton Foods taking over production at the company’s facility in Amble.
But administrator Begbies Traynor announced yesterday that Longbenton had failed to raise the funds to complete the purchase and production has since ceased.
“It is hoped that a purchaser can be found who is able to recommence production in Amble and the administrators are eager to talk to any interested party,” a statement.
“We will work with the [local] council in the hope that the jobs which the business previously provided can be restored. “
Two hundred and fifty jobs were lost when Northumberland called in the administrator, with Longbenton subsequently re-hiring 70 staff as it resumed production.
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