Simon Thomas and Robert Pick, of insolvency specialist Moorfields Corporate Recovery were appointed joint administrators of the Buckingshamshire frozen food manufacturer last week (July 18).
Mondo Foods specialised in the manufacture of quiches for major supermarkets, wholesalers and retailers. The firm had successfully traded for 21 years before going into administration on May 17.
Price wars
Simon Thomas, partner of Moorfields, said: “Powerful supermarkets are continuing to put pressure on food manufacturers as they compete in price wars to keep customers.”
Moorfields said the company started to experience financial difficulty in the fourth quarter of 2011 as a result of “increased pressure from key customers”. The company entered a Company Voluntary Liquidation (CVA) around this time.
Moorfields said: “Unfortunately the company was unable to generate sufficient turnover to make the CVA work and ceased trading in May 2012.”
Asset sale
Following a period of marketing, the administrators successfully achieved a sale of the company’s assets.
“The food manufacturing industry has been hit particularly hard by the recession,” said Thomas.
“Many manufacturers are failing to put long-term plans in place and rely on short-term strategies to help them survive. Inevitably, in some cases, these solutions are insufficient to ensure the long-term survival of the business.”
Mondo Foods’ trading premises and equipment have been sold and Moorfields anticipates that its business will be recommencing “in the near future”.
