Rock Farm Dairy enters administration

Stephen Oldfield and Ian Green of PwC were appointed as joint administrators of the Rock Farm Dairy Limited on 1 March 2012 by the company directors.

The company, which has an annual turnover of around £17m, processes and bottles milk and cream which is distributed to a diverse customer base across the North of England.  The company operates from a facility in Wheatley Hill, Durham with a capacity to process 150,000 litres of milk per day. 88 staff were employed by the company at the date of appointment.

The appointment is a result of disappointing trading performance due to a significant rise in bad debts from customers combined with an increasing cost base, and difficulties passing price increases on to customers. This has had an adverse effect on margins, culminating in the business experiencing liquidity difficulties.

Following the appointment of administrators, the business has suspended trading with immediate effect.

The administrators are working to secure a third party interested in a tolling arrangement where the company facilities would be used for a fee payable to the administrators. Employees have been told their position will depend on the result of urgent talks with potential tolling partners during the coming days.

Stephen Oldfield, joint administrator said:

"Trading has suffered in recent months and the administration is clearly disappointing news for all of the stakeholders, and employees in particular. However, we are looking to secure a rapid tolling agreement for Rock Farm Dairy. We are very keen to speak to anyone who might have an interest in such an arrangement."