Vbites Foods Limited (02820029): administration
- Status
- Administration ended
- Administration began
- 2023-12-11
- Administrators' firm
- Interpath Advisory
- Formerly
- The Redwood Wholefood Company Limited; J.R.J. Foods Limited; Bonneyquote Limited
- Incorporated
- 1993-05-20
- Location
- Leeds
- Industry
- 10890 Manufacture of other food products n.e.c.
Why it went into administration
- Weak consumer demand
- Funding withdrawn / unable to refinance
- Property / lease costs
- Sustained trading losses
From the administrators' statement
In recent years, the Company has been loss making which was compounded by the move from its former premises, in Benton, to Peterlee in 2021. The move to Peterlee coincided with an equity investment from a German based investor, NRH, which acquired 34% of the Company’s shares. Seckloe owns the remaining 66% and has been the Company's majority shareholder since inception.
The move to the premises in Peterlee significantly increased the Company’s fixed cost base owing to the scale and size of the premises. This, alongside rising raw material prices, rising energy and labour costs and the cost-of-living crisis lead to consumers opting for cheaper alternatives to the vegan products supplied by the Company. This resulted in an even larger cash requirement for the business to enable it to continue to operate as a going concern.
These issues created a large funding requirement but negotiations between the shareholders around further injections stalled. As a consequence of an impasse, the directors concluded that it was appropriate to take the decision to place the Company into administration. James Clark and Howard Smith were appointed Joint Administrators of the Company on 11 December 2023.
Administrators' statement of proposals (2024-01-22) · Companies House register