Howard Smith and Mark Firmin of KPMG’s restructuring practice have been appointed joint administrators to North East business David Price Food Services.
The business comprises a cold storage division, with facilities in Wallsend and Glasgow which the administrators sold to Ice Company Distribution Ltd shortly after appointment, saving 29 jobs.
However, the chilled haulage division of the business has stopped trading with immediate effect and unfortunately 109 employees have been made redundant. Five employees at the head office in Wallsend will be retained in the short term, to assist with the administration.
The haulage operations were based at six depots in Bristol, Bury St Edmunds, Glasgow, Gillingham, South Kirby (Yorkshire) and Wrexham.
The appointment of administrators to the business results from a period of poor trading and an increased cost base, primarily due to fuel and utilities costs.
Alison Anderson, KPMG Corporate Communications
T: 0113 254 2980 E: firstname.lastname@example.org
KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and operates from 22 offices across the UK with over 12,000 partners and staff. The UK firm recorded a turnover of £1.8 billion in the year ended September 2012. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. We operate in 156 countries and have 152,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. KPMG International provides no client services.