Almost 270 jobs are set to be lost as meat supplier Russell Hume, based in Derby, has gone into administration after its plants were shut down by the Food Standards Agency which identified a problem with food hygiene compliance.
The supplier’s products were recalled last month and its plants closed while the FSA investigated – KPMG have now been appointed as administrators.
Chris Pole, partner at KPMG and joint administrator, said the recent product recall and halt in operations had resulted in a customer exodus.
“Our priority over the coming days will be to work with all affected employees to provide the assistance they need in claiming monies owed from the Redundancy Payments Office,” Mr Pole said.
“We will also be seeking buyers for the business and its assets. Any interested parties are advised to contact us as soon as possible.”
Russell Hume’s directors, while committed to working with the FSA over the food hygiene issues, said that they felt the regulator’s actions had been “out of all proportion to the concerns it says it has identified.”
The company had six production sites in Liverpool, Birmingham, London, Boroughbridge, Exeter and Fife.
Heath Thomas, Harrison Clark Rickerbys’ food safety expert, said: “This very sad outcome illustrates how central hygiene is for any food supplier or processor; moving swiftly in the face of regulatory investigation or product recall is essential to stem this kind of collapse. I would urge any business to seek advice urgently if faced with these circumstances.”