A number of interested parties are looking at the possibility of taking on the failed business of Blackdown Hills Westcountry Eggs.
The company ceased trading at the end of July, leaving 19 egg producers who were supplying the company high and dry.
Other packing companies subsequently came to their rescue and we understand that all of them have now secured either short or long term contracts with alternative packers.
Noble Foods, the country's biggest egg company, confirmed that it had taken on five of the producers.
Fairburn's is believed to have taken at least one producer and Fridays was also looking at providing a home for some producers' eggs.
Blackdown has gone into administration, which is being dealt with by the audit, accounting and consulting group Mazars.
The firm has confirmed that it had been appointed as administrators for Blackdown Hills Enterprises Limited, trading as Blackdown Hills Westcountry Eggs, and for Blackdown Gold.
'Demand dropped dramatically'
A spokesman also confirmed that there had been a proposal for the sale of the business before it entered administration but the sale had fallen through.
FarmingUK has discovered from sources that there may be a number of parties interested in the business, even though it has now ceased to trade and members of staff have been made redundant. Mazars would not comment on potential interest.
In a statement, Mazars said: "A recent proposed sale of the company fell through and, as a result of the extremely warm summer weather, demand for eggs dropped dramatically, which has had a severe knock-on effect on the price of eggs the company could demand, resulting in cash flow difficulties and significant losses being incurred as a result."
FarmingUK understands that the loss of a contract to supply eggs to the supermarket, Aldi, had impacted on Blackdown.
Since its formation by Kenneth Cottey in 2004, the company had expanded to reach a turnover of in excess of £11.1 million in the year ending October 2017.
Mazars said: "In the absence of further funding being readily available, the directors decided that the company had to be placed into administration. The business ceased to trade on July 31, 2018 and all 18 remaining staff were made redundant."
'Family business'
Tim Ball and Mike Field of Mazars were appointed as joint administrators by the Directors on August 13, 2018.
Mike Field said: “It is sad to see a business like Blackdown Hills Enterprises Limited fail as it is a family business that has successfully traded for many years and become a known brand in its market.
"External factors have impacted this business which has, in recent years, developed a state of the art egg grading, packing and distribution centre in the heart of Somerset.
"Unfortunately, given a very significant drop off in trade in recent months, the company has run out of cash and the directors had to make the difficult decision to enter administration to prevent the position for creditors worsening.
Mr Field added: "The administrators are currently seeking a buyer for the business and assets and would welcome offers from any interested parties at this time”.
'Tough trading conditions'
The administrators said the company’s assets included an egg grading, packing and distribution centre with office, a grading and packing line with 170 cases per hour capacity (30 dozen eggs per case), three hen sheds (6,000, 6,000 and 16,000 capacities respectively) with associated equipment, a cleaning shed, a storage shed, plant and equipment, vehicles, a customer list, the company's trading name, goodwill and intellectual property and the company web site.
They said interested parties should contact them as soon as possible.
Blackdown Hills is believed to have been hit by the tough trading conditions currently affecting the egg market. The summer months are traditionally more difficult for egg sales but free range has run into serious oversupply.
It follows news of Andy Crossland, trading manager at Central Egg Agency, saying he was "swamped" with eggs and struggling to find a home for some grades.
