Cost increases and staff shortages blamed for Vale of Mowbray collapse

Administrators appointed to wind up Leeming Bar piemakers Vale of Mowbray say an increase in costs and problems finding staff are to blame for the company’s closure.

Administrators have confirmed 171 people have been made redundant with a further 38 kept on in the short-term while the assets are sold off.

Martyn Pullin, Mark Hodgett and David Shambrook of specialist business advisory firm FRP were appointed as joint administrators to Vale of Mowbray Limited yesterday.

They said in a statement issued this morning that the business has experienced “significant financial challenges in recent years due to rising raw material input prices, increasing energy costs and sector-wide recruitment challenges”.

Attempts were made to attract fresh investment into the business but the “without any viable offers and without the resources to continue trading, the directors have appointed administrators and closed the business”.

The business employed 219 staff, with 171 people made redundant this week.

The remaining staff have been retained in the short term as the administrators wind up the operations and move towards an asset sale of its two freehold manufacturing sites in Leeming Bar, plant and machinery, as well as intellectual property.

Martyn Pullin, partner at FRP, said: “The Vale of Mowbray was a proud family business with a loved brand that has been synonymous with pork pies for generations.

“But the increasingly difficult trading conditions being experienced by many energy and labour intensive manufacturing businesses have ultimately led to the business’ closure.

“We are urgently calling on any interested parties to come forward. In the meantime, we are preparing to wind up the business’ operations and move towards an asset sale in line with our statutory obligations.

“We are on site and supporting staff, through what is an extremely challenging time, as we support claims to the redundancy payments service.”