HEART of ENGLAND fine foods enters voluntary liquidation
HEART of ENGLAND fine foods today took steps to go into voluntary liquidation.
HEFF said that its board of directors had no other choice but to take the decision after a number of factors affected trading.
The termination (at three years) of a six year contract HEFF had with Shropshire Council for the management of the Shropshire Food Enterprise Centre; was one of the reasons the company gave for entering voluntary liquidation.
Directors also blamed slow trading across other areas of the business and funding, initially allocated in January 2014, from UKTI to support HEFF’s international work not materialising.
A move to Shrewsbury College in March this year provided HEFF with a medium to long term life line, but in the short term the business is not generating sufficient income to replace lost funding.
Over the course of the last few months its Board of Directors said they had worked with the executive team to explore all potential options to enable HEFF to remain open for business but despite their valiant efforts they were unable to secure any additional sources of income from either the public or private sector.
Whilst the company still has healthy reserves, it continues to trade at a loss and it is not expected to be able to trade out of the current financial difficulties in the short term.
The closure of HEFF will have significant repercussions for business across eight of the English counties. Whilst the immediate job losses at HEFF will be 15 the knock on effect is likely to see 100’s of jobs within small businesses put at risk.
HEFF was established with Government funding to support start up businesses and SME’s within the food industry in 1998. Over the past 16 years it is estimated that HEFF has generated in the region of £90m GVA through its work, created and safeguarded in excess of 2,000 jobs and supported at least 2,800 food and drink manufacturers.
A meeting for shareholders will be convened by Rimes and Co on the 9 July 11.00am at Stone Manor Hotel, Kidderminster. A meeting for creditors will follow the shareholders meeting with the purpose of confirming the appointment of a Liquidator.
