Tom MacLennan, Callum Carmichael and Michelle Elliot – partners with FRP Advisory – have been appointed joint administrators of Dawnfresh Holdings Limited, Dawnfresh Seafoods Limited and R R Spink & Sons
While the business benefited from extensive investment to upgrade the plant and systems, improve efficiency and reduce costs, Dawnfresh continued to suffer from rising costs, overcapacity at the Uddingston site and unsustainable cash flow problems, with administration reportedly the only option.
The Uddingston facility – which was heavily loss making – has closed with immediate effect, resulting in 200 redundancies. Administrators have retained 77 staff to assist with the winding up process.
Subsidiary business Dawnfresh Farming will continue trading solvently, with the business marketed for sale and interested parties invited to contact FRP Advisory as soon as possible.
Commenting on the administration, Callum Carmichael said: “Unfortunately, [Dawnfresh] has been unable to overcome very serious financial problems at the Uddingston facility, but we are pleased to have secured a prompt sale of the Arbroath facility [R. R. Spink & Sons] in a deal that will also preserve substantial employment in the town.
“Our focus is now on finding a buyer for the farming business whilst also realising as much value as possible from the other assets for the benefit of creditors.”
Lossie Seafoods, a subsidiary of Associated Seafoods, has agreed to acquire the assets and goodwill of Arbroath-based seafood processing business R. R. Spink & Sons, protecting the jobs of the 249 employs at its Arbroath site.