Symbol groups and franchise operators have moved to reassure retailers that Enterprise Foods’ collapse last week will have a minimal impact on supply.
The Glasgow-based retail supplier which has traded as Localist – The Food Merchant since last year, went into liquidation on 18 March and has ceased trading, leading to redundancies and concerns over supply chain issues.
However, any fears the collapse might impact independent retailers have been calmed by comment from several groups supplied by Enterprise Foods.
Speaking with Convenience Store, both Morrisons Daily and Nisa - via Co-op Wholesale - said they did not predict that the end of Enterprise would affect its stores or their supply chains.
A spokesperson from Morrisons said: “We did work with Enterprise Foods, but only for a small number of products as part of our local sourcing range. We’re currently in communication with the suppliers and will be looking to continue our relationship on a direct-to-store basis.”
Co-op Wholesale also added that the collapse would affect neither their “wholesale business or Nisa stores.” From 20 March, Co-op has been issuing purchase orders directly to suppliers as a temporary arrangement to maintain supply, which will be paid on 30-day terms, it said in a form sent directly to them.
Speaking on the liquidation in a release to the press earlier this week, Thomas McKay, managing partner of legal firm BTG in Scotland and Northern Ireland, which has been handling the case, said: “The directors had made efforts to restructure the debt of the company in order to save the business and rescue the jobs, and the loss of the jobs was sadly inevitable when this was not successful.
“There are many small suppliers to the business that are owed money, and the loss of this route to market will also have a serious knock-on effect to these food producers as well. We’re working to assess all claims and establish whether there will be any dividend paid to unsecured creditors, but it is not likely to be significant, given the level of secured debts in the business.
“Regrettably, the failure of the company has resulted in 71 redundancies and we’re working closely with those affected to help them access the financial entitlements and support available to them.
“Our priorities now include ensuring these employees receive the guidance and advice they need during this process, and that we maximise the return from the sale of assets to the benefit of creditors.”
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