East Anglian farmers affected by the collapse of a Cambridgeshire-based grain merchants face an uncertain future if they are among the 286 names on a list of creditors believed to be owed more than £15m.
Ely-based merchant Wellgrain went into administration on 2 March.
Only a handful of the 33 staff have been retained by appointed administrators Matthew Richards and Daniel Smith of Grant Thornton.
A number of farmers are among the unsecured creditors and with their future payouts now remaining uncertain.
Some farmers say they stand to lose up to £100,000 following the news.
Many arable farmers owed money by the company have been reluctant to speak publicly about the collapse, but say the warning signs were there up to a fortnight before Friday’s official statement.
The creditors list ran to 286 names on Tuesday (7 March), with NatWest and RBS Invoice Financing the only secured creditors, giving them first call on any cash from the administration process.
Wellgrain has been trading since 2003 and is part of Driftfwell Investments Ltd and run out of the same Alexandra House head office in Ely by Doug Spinney.
'Extremely worrying'
A statement on the Wellgrain website says: “The business has ceased to trade and the business and assets of Wellgrain are under the control of the joint administrators”.
The NFU has contacted administrator Grant Thornton and says will keep members informed about how the administration will proceed.
NFU acting senior legal adviser Lucy Ralph said: “The news that WellGrain Limited has entered administration is extremely worrying, particularly for those NFU members who are owed money by the company.
“We are working to provide guidance to those NFU members who are affected by the administration. They are encouraged to contact NFU Callfirst on 0370 845 8458 as soon as possible.”
