{"id":4101,"date":"2018-11-07T08:34:47","date_gmt":"2018-11-07T08:34:47","guid":{"rendered":"http:\/\/www.styledeals.co.uk\/blog\/norfolk-poultry-firm-had-40m-debts-before-sale\/"},"modified":"2018-11-07T08:34:47","modified_gmt":"2018-11-07T08:34:47","slug":"norfolk-poultry-firm-had-40m-debts-before-sale","status":"publish","type":"post","link":"https:\/\/www.styledeals.co.uk\/blog\/norfolk-poultry-firm-had-40m-debts-before-sale\/","title":{"rendered":"Norfolk poultry firm had \u00a340m debts before sale"},"content":{"rendered":"\n
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\"Chickens\"Image copyright<\/span>
\n British Poultry<\/span><\/p>\n

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Image caption<\/span>
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\n Banham Poultry had been in business since 1965 in Attleborough
\n <\/span>
\n <\/figcaption><\/figure>\n

A poultry firm collapsed last month with debts of \u00a340m, the BBC can reveal.<\/p>\n

The Norfolk company, which supplied chicken to Morrisons and Aldi, was sold in a deal which safeguarded 1,000 jobs at its Attleborough factory.<\/p>\n

But hundreds of suppliers are owed millions with little hope of repayment.<\/p>\n

Banham Poultry was bought out of administration by Chesterfield Poultry of Derbyshire in pre-pack deal where a buyer is lined up before a company becomes insolvent.<\/p>\n

Two workers died <\/a>in a suspected chemical spill at the Attleborough factory when it was put up for sale. <\/p>\n

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<\/span>

Image caption<\/span>
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\n A former Banham Poultry truck leaving the Norfolk factory
\n <\/span>
\n <\/figcaption><\/figure>\n

A creditors’ report by the accountants Duff & Phelps said Banham had a total debt of \u00a340m, owed to about 700 companies and organisations.<\/p>\n

Lloyds Bank is owed \u00a319.7m but is in line to be repaid \u00a39m, according to the report. <\/p>\n

It also found that trade creditors, which include chicken hatcheries, cleaning firms, transport companies and recruitment agencies, are owed \u00a315m.<\/p>\n

The company pension fund is owed \u00a35,095m. <\/p>\n

Trade creditors are likely to be repaid only four pence for every pound they are owed, according the administrators. <\/p>\n

One farmer, who wanted to remain anonymous, told the BBC he had supplied chicks to Banham for many years. <\/p>\n

He was owed “hundreds of thousands of pounds” and was expecting to receive “virtually nothing” from the administrators.<\/p>\n

“The news [about Banham] came out of the blue,” he said. “It’s a big blow but we will have to try and trade our way out of it.” <\/p>\n

Like other creditors, he is continuing to supply the new owner of the business.<\/p>\n

Chesterfield Poultry bought Banham for about \u00a37m.<\/p>\n

The deal was welcomed in Attleborough because it preserved jobs and kept the supply chain intact. <\/p>\n

However, it is now clear that companies in that supply chain are taking a big financial hit.<\/p>\n

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<\/span>

Image caption<\/span>
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\n The company was bought by Chesterfield Poultry last month
\n <\/span>
\n <\/figcaption><\/figure>\n

Banham had a turnover of about \u00a3150m a year and processed more than a million chickens per week. <\/p>\n

It accounted for about 7% of the UK poultry market.<\/p>\n

Joint administrator Allan Graham said: “The business faced a perfect storm, with increasing margin pressures from supermarket chains as a result of price competition, combined with increases in feed prices.<\/p>\n

“It had been undertaking a number of capital projects designed to improve productivity in the longer term but these have impacted short-term profitability.”<\/p>\n

Efforts have been made to contact Chesterfield Poultry about the deal. <\/p>\n<\/p><\/div>\n


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Source<\/a> by [author_name]<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Image copyright British Poultry Image caption Banham Poultry had been in business since 1965 in Attleborough A poultry firm collapsed last month with debts of \u00a340m, the BBC can reveal. The Norfolk company, which supplied chicken to Morrisons and Aldi, was sold in a deal which safeguarded 1,000 jobs at its Attleborough factory. But hundreds … <\/p>\n","protected":false},"author":0,"featured_media":4102,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-4101","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general"],"_links":{"self":[{"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/posts\/4101","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/comments?post=4101"}],"version-history":[{"count":0,"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/posts\/4101\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/media\/4102"}],"wp:attachment":[{"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/media?parent=4101"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/categories?post=4101"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.styledeals.co.uk\/blog\/wp-json\/wp\/v2\/tags?post=4101"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}