KPMG Joint Administrators Confident Wrestler Foods Can Wrestle Pension Deficit
Military food and canned goods supplier Wrestler Foods can withstand the pension crisis the company faces while buyers are being sought for the mean time, KPMG administrators said.
The Yorkshire-based company, which has been supplying rations to British troops since 1990, mountain climbers and campers, and sports venues and street traders since the 1960s, appointed KPMG administrators after pension deficit of the company escalated to more than £15m ($23m) following evaluation of its benefit pension scheme in 2009.
KPMG expressed confidence that the appointment as joint administrators of its restructuring partners Howard Smith and Mark Firmin can bring in buyers who would fill in the widening gap of the company’s pension deficit. Wrestler Foods is currently operating normally with its over 200 employees in Yorkshire, supplying rations to soldiers in Afghanistan as the administrators are looking for buyers.
One of KPMG administrators, Mark Smith, said Wrestler Foods was a promising business that could generate and maintain higher profits, except that its budget deficit became worse, forcing the company to go into administration.
Products of the company include ready to eat canned goods that could be heated to spare the customers in a hurry from cooking for meals. It also owns the patent of Wayfayrer ready-to-eat pouched meal of chicken and vegetable curry. These foods are designed to withstand high temperatures for approximately three years, according to WrestlerFoods.
In June 2009, auditors who signed off the company’s accounts that covered a period from March to November 2009 raised the prospect that Wrestlers Foods’s increasing pension deficit could make it categorized as a “going concern.”