Major vegetable packer Bomfords has gone into administration despite sales of £150m last year.

Deloitte was called in last week and said 75 companies had already expressed an interest. Bomfords is continuing to trade with Tesco, Sainsbury's and Asda, which it supplies with spring onions, asparagus and sweet potato. But there is concern over the future of the company's growers who are owed £18m.

"We are examining ways of limiting the impact on growers," said a Tesco spokeswoman. "This may involve sourcing their products through other intermediaries. However, it is not possible to give any guarantees at this stage."

Deloitte said it aimed to sell the packer and its prepared vegetable division as a going concern. A spokesman blamed the failure on "significant cost overruns in the recent construction of a new packhouse and administration building", as well as start-up costs of Bomfords Prepared business.