Food Trip for KPMG to Go a Long Way

Lucas Gilmore, “Big 4″ observer
December 23, 2010 /

PoleStar’s subsidiary,  food company Leamington Desserts, which went into KPMG’s administration as a going concern on November 30, might continue to face difficulty as KPMG administrators expressed doubt they could find a buyer sooner that could at least save the more than 160 jobs in the site.

Although the sale deadline for the food company was over since December 22, Leamington Desserts has continued with its operations of producing frozen desserts while KPMG administrators are striving to find buyers.

KPMG admitted that it has not any progress to disclose as of the moment with regards to the process of selling the food company, saying that since the sale deadline was over, all it can do for the meantime is wait and see what will transpire next.

Will Wright, joint administrator at KPMG, said there had been interested parties visiting the food company’s site, hopefully to buy PoleStar’s subsidiary.

The food company annually generates revenue at £10.5 million, with 65 percent coming from its retail while 35 percent from its food services clients.

In contrast to Leamington Desserts’ difficult times, the rest of PoleStar’s subsidiaries, like Oakhampton Desserts, have withstood the administration with the help of Privet Capital’s monetary aid that saved 255 employees.

PoleStar’s chief executive officer last month resigned from his post following confrontations with the board members and complaints from suppliers for late payments. Earlier in December, Privet Capital has fully acquired the food company that prevented it from failing.

However, Privet Capital did not extend its aid to Leamington Desserts, leaving the company in searching for buyers,

As Privet Capital’s director Ian Astley said, “Despite exhaustive efforts in considering the future of the Company, regrettably, we have been
forced to appoint administrators to the significantly loss-making Leamington factory. We look forward, however, to working with Polestar and enabling the Company to realise its considerable potential.”

 

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