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Tillery Valley Foods enters administration resulting in 230 job losses

Tillery Valley

Tillery Valley Foods enters administration resulting in job losses amid inflationary pressures

One Wales' biggest food suppliers, Tillery Valley Foods, has entered administration, resulting in the loss of nearly 230 jobs.

The Abertillery-based company attributes its financial troubles to inflationary pressures, including escalating food and energy costs, which have adversely affected its cash flow.

Despite raising prices, the company could no longer sustain solvent trading.

Although attempts were made to explore a potential sale of the business, no viable deal materialized.

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The Welsh Government says it made efforts to support a management buyout of the business.

However, this proposal did not receive backing from the owners, the private equity-backed Joubere Food Group.

Interpath Advisory has appointed Tim Bateson and Will Wright as joint administrators, leading to the immediate redundancy of nearly 230 employees.

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With annual sales exceeding £20 million, Tillery Valley Foods supplies meals to local authorities, schools, and 30 NHS Trusts across England.

The administrators have retained 24 employees to carry out an orderly wind-down of the business.

Mr. Bateson, director at Interpath Advisory and joint administrator, told BusinessLive: “This is a tremendously sad day for the company’s dedicated employees, a number of whom have worked for the company for over three decades, as well as for the wider community in Abertillery.

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“Our immediate priority will be to provide support to all those who have been made redundant, including supporting them with the information required to submit claims to the Redundancy Payments Office, and we are also aiming to host workshops in conjunction with local employment agencies and employers.

“Over the past few months, the directors have worked tirelessly to safeguard the future of the business, including undertaking a process to seek new investment and/or owners. They have also been in regular dialogue with key stakeholders, including local MPs, Welsh Government and NHS England, keeping all informed.”.

Before the administration, Tillery Valley Foods stood as one of the largest private-sector employers in Abertillery.

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A spokesperson from the Welsh Government describes the news as extremely disappointing and a significant blow to the dedicated workforce, their families, and the wider community.

The government worked closely with the local management team and Blaenau Gwent County Borough Council to explore options for a management buyout.

The Economy Minister, Vaughan Gething, engaged with the team and the plant's union multiple times in pursuit of a resolution.

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The local management buyout team's tireless efforts demonstrated the potential for a viable business at the site.

Despite the recent news, the government continues to consider further development possibilities to ensure the business's long-term success.

The spokesperson expresses regret that the outgoing company's leadership did not provide the necessary transparency and openness to allow sufficient time for the development of a strong business plan.

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The government repeatedly sought information to prevent this outcome and explore alternative options, but clear and timely information was not provided.

The government will now establish an urgent taskforce in collaboration with the local authority, Community Union, local elected representatives, and the Department for Work and Pensions (DWP).

This taskforce will involve support from the Welsh Government through Careers Wales and the ReAct program, offering tailored packages to assist the workforce in finding new job opportunities.

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Stephen Bolton, executive chairman of Joubere, expressed deep regret that, despite all efforts, the business could not be saved.

He mentioned that the energy crisis posed significant challenges after Joubere acquired the company 20 months ago, with energy costs increasing by £2 million in the first year, followed by ingredient and material costs inflation.

Bolton acknowledged actively engaging with the Welsh Government but stated that nothing was forthcoming.

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