Thursday, June 2, 2011

Fashionable Food

GoIndustry DoveBid recently competed the valuation and sale of a producer of cooked, smoked and cured meats for a major UK insolvency practitioner.

GoIndustry DoveBid carried out a desktop appraisal in mid 2010, details of which were included in the proposal for a Company Voluntary Arrangement at the time. The cooked meats producer had supplied major retailers, food service outlets and public bodies. The loss of key contracts in a fiercely competitive market with continual downward pressure on price from buyers, had meant that there was not enough business to fill the 125 tonne per week capacity of the plant in Milton Keynes, Buckinghamshire, UK. Eventually, the company was not able to cover overheads, despite its agreement with creditors.

The directors and insolvency practitioners, then acting as supervisors to the CVA, asked GoIndustry DoveBid to attend on site in January 2011 to review the 2010 desktop appraisal and to submit a formal valuation report. Simultaneously, the company was offered for sale by the directors, insolvency practitioners and GoIndustry DoveBid in a combined marketing campaign.

Despite numerous enquiries, no party stepped forward to make an initial offer and the administrators were appointed in February. GoIndustry DoveBid was asked to realise the plant and machinery assets and an online auction sale closed in March 2011.

Assets for sale included meat grinders, tumblers, injectors, tenderisers, sausage machinery, smoking, steaming and roasting ovens, slicers and thermoforming packging machines as well as a wide range of ancillary service and factory equipment.

85 parties registered for the sale from 13 different countries, including Peru, Venezuela, Ecuador, India and Malaysia as well as a number of European countries including the UK and Ireland. More than 2,700 bids were received from 72 of those registered.

The sale achieved slightly higher than hoped for. More than three fifths of the gross assets sales came from Ireland, which demonstrates that ther is clearly still cash in the Irish economy, and let’s face it, whilst other sectors may be suffering, food never goes out of fashion.

For more information on the services offered by GoIndustry DoveBid please see our website