Wed, 02 Mar 2022 | ADMINISTRATION
Administrators from FRP are seeking a buyer for Scottish seafood business Dawnfresh Farming, following the collapse of its parent company. Dawnfresh Seafoods and RR Spink & Sons (Arbroath), among the UK’s biggest producers and processors of seafood, fell into administration as a result of issues including cash flow problems and rising costs.
The administrators have secured the sale of RR Spink & Sons, which operates from a facility in Arbroath, to Lossie Seafoods, part of the Associated Seafoods Limited group. However, the company’s loss-making Uddingston facility has been closed with immediate effect.
Administrators will now market assets from the Uddingston site, including land, buildings and plant, for sale and wind up the facility. Subsidiary Dawnfresh Farming will continue to trade solvently while FRP seek a buyer and look to realise value from remaining assets.
The business was founded in 1973 and headquartered at the Uddingston site. In addition to its production and processing facilities at Arbroath and Uddingston, the company operates seven farms throughout Northern Ireland and Scotland. It offers a range of services, including fish processing and supply, to clients in retail, food service, wholesale and the export market. The company also produces branded products, including Loch Etive and RR Spink.
The business has undertaken significant investment in its plant and systems over recent years, as it sought to reduce costs and improve efficiency. However, it has struggled due to rising costs, unsustainable cash flow issues and overcapacity at the Uddingston facility, ultimately leading to the company entering administration.
FRP Advisory partners Tom MacLennan, Callum Carmichael and Michelle Elliot were appointed as joint administrators. Carmichael commented: “Dawnfresh is a high profile and highly regarded seafood business with a long tradition of supplying innovative products to a blue-chip customer base.”
“Unfortunately, the business has been unable to overcome very serious financial problems at the Uddingston facility, but we are pleased to have secured a prompt sale of the Arbroath facility in a deal that will also preserve substantial employment in the town.”
“Our focus is now on finding a buyer for the farming business whilst also realising as much value as possible from the other assets for the benefit of creditors.”
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