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FRP Advisory LLP appointed Joint Administrators to PoleStar Foods Limited and Okehampton Desserts Limited

7 February 2011

Update – 15 February 

Phil Armstrong, partner at FRP Advisory LLP and Joint Administrator to PoleStar Foods Limited and Okehampton Desserts Limited, provides the following update: 

"Following the formal bid process, only one viable offer was received and we concluded a sale of the plant, machinery and freehold to Devonshire Desserts Limited on Tuesday 15 February." 

All further media enquiries should be directed to Devonshire Desserts Limited - Tel: 01837 650 300

PoleStar Foods Limited and Okehampton Desserts Limited, the Okehampton based suppliers of own-label desserts and Heinz branded products, entered into administration on 4 February 2011 with the appointment of Joint Administrators, Phil Armstrong and Nick O’Reilly, partners at specialist restructuring, recovery and insolvency firm, FRP Advisory.

PoleStar Foods Limited and Okehampton Desserts Limited were acquired by Privet Capital in November last year, when the Companies were facing imminent collapse.

Commenting on the administration, Phil Armstrong said: "PoleStar Foods and Okehampton Desserts have been in difficulties since their formation in December 2009 and, indeed, the Companies were struggling under their previous ownership. Unfortunately, the restructuring of the business was not sufficient to ultimately solve the Companies' cashflow problems.

"The Companies unfortunately did not represent a viable purchase as a going-concern. The Directors, therefore, sadly had to make 232 employees at the Okehampton site redundant on Tuesday, 1 February, prior to our appointment. Our employee specialists, together with a local Job Centre team, will be on-site this week to advise all staff members on their best route back into employment and assist with their claims from the Redundancy Payments Office.

"We are now working towards an outcome where a buyer can be found for the operation, in the hope that some staff can be re-employed under new ownership."

Interested parties regarding the sale of the business should contact Anthony Simmons and Steve Beattie, FRP Advisory, on +44 (0) 203 005 4000.

Media Contacts:

Kate Macnamara, Grayling
Tel:   +44 (0)121 265 2761
Mobile: +44 (0)771 422 2793
Email:   kate.macnamara@grayling.com

Rebecca Bannister, Grayling
Tel: +44 (0) 121 265 2763
Mobile: +44 (0) 7740 732 884
Email: rebecca.bannister@grayling.com