Irish-based food manufacture Hibernia Foods has been placed into receivership as its largest creditor General Motors Acceptance Corporation has called in debt.

Hibernia produces Sara Lee bakery goods, Mr Brain’s faggots and Entenmann’s chilled desserts as well as a number of own label goods for UK supermarkets. The company has a workforce of 2,000 across six UK sites.

Hibernia - which has a factoring facility through GMAC - last week announced the departure of its chief executive Oliver Murphy and finance director Colm Delves.

Joint receiver at KPMG, Allan Graham, said: “We are currently trading the business while we seek buyers for the assets.

“However, to continue to do so successfully, we must retain the support of customers, suppliers, creditors and employees through this process, and we hope to seek assurances from them on this front over the coming days.”

Last November, Hibernia said a decline in sales was due to intense competition in frozen desserts from a major advertising, promotional and re-branding exercise by its largest competitor Heinz.