Further Worry For Farmbox Meats Creditors

08 Aug

Creditors of a mid-Wales meat company which entered administration after being implicated in the horsemeat scandal are facing further worry over how much cash they are likely to recover.

A new report published by the joint administrators of Farmbox Meats Ltd said invoice finance provider Bibby Financial Services was owed £206,000 at the date of their appointment in June and it is “not yet certain” whether the lender will be repaid in full. Unsecured creditors are “unlikely” to recover any money owed to them although the total amount is still unknown as a statement of affairs document has not yet been provided by Farmbox Meats’ director.

In February, work at Farmbox Meats in Llandre was suspended by the Food Standards Agency (FSA) as part of an inquiry into alleged mislabelling of meat products. In March the FSA lifted the suspension and the business was allowed to operate under conditional approval. But in April, approval to operate was refused by the FSA over hygiene standards, which the company disputed. In June insolvency administrators were then appointed to the company.

A report from the administrators shows that in its first year of trading,  Farmbox Meats made a pre-tax profit of £95,000 on a turnover of £2.1m. Management accounts suggest the turnover figure jumped to £5m in the second year.

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