Fullwell Mill Limited (02297114): administration
- Status
- Administration ended
- Administration began
- 2022-08-04
- Administrators' firm
- Begbies Traynor
- Formerly
- F.M. (Foods) Limited; Surgestamp Limited
- Incorporated
- 1988-09-15
- Location
- New Bridge Street West
- Industry
- 56290 Other food services
Why it went into administration
- COVID-19
- Loss of a key customer, supplier or contract
- Loss-making contracts / project overruns
From the administrators' statement
The Company historically traded as a baker specialising in organic breads however, over the years, the product range increased and the Company's main products are now sports & nutrition foods, organic Fairtrade fruit and nut bars and dried fruit and nuts. The Company has traded since 1990, trading most recently from premises in the Southwick Industrial Estate in Sunderland. The Company's turnover was in excess of £2 million for the years 2020, 2021 and 2022, as per draft financial information. The Company has one major customer and a dozen others which it regularly trades with. The Company employed over 30 employees up until recently where, due to the Company's financial position, approximately a third of the workforce was given notice and made redundant.
The Company began to experience financial difficulties as a consequence primarily of both the United Kingdom's ("UK") withdrawal from the European Union ("EU") and the COVID-19 pandemic. The Company supplied the retail market, and its significant customers were train stations and airports, in both the UK and the EU. The sales to train stations and airports were severely affected by the COVID-19 pandemic and although sales had retumed, they were nowhere near the pre-pandernic levels.
Further problems have arisen within the last 6 months by the global shortage of vital ingredients. This has not only resulted in a lack of product but has also caused significant price rises, in certain cases, by over 100%. As the Company had fixed price contracts, these price increases significantly affected profitability.
Administrators' statement of proposals (2022-08-16) · Companies House register