Rock Farm jobs 'secure' after sale of business

55 jobs at Rock Farm Dairy have been secured following the sale of the company to UK Dairy Sales Limited.

The administrators successfully negotiated a tolling agreement with UKDS, which preserved the opportunity to sell the business as a going concern, where assets have remained in the same location which preserved higher value, protected employment and provided continuity of supply to customers.  

The conclusion of the sale is a result of successful negotiations between the administrators and UKDS following a productive tolling period that lasted 90 days.

All employees retained by the Company following administration will be transferred to the new owner along with Company owned assets.

'We are delighted to have successfully concluded terms with the tolling partner, UKDS, for the sale of the Company's business and assets. The sale is positive news for all stakeholders as it enables the transfer of 55 employees and preserves continuity of supply to customers in the North East, providing a longer term solution beyond the tolling agreement' said Stephen Oldfield, joint administrator.

'The sale of the assets to the tolling partner in their current location also preserves significant value for the Company's creditors. Going forward we will continue to concentrate on the recovery of the Company's pre-appointment debtors in order to achieve enhanced dividend prospects for all unsecured creditors.' 

The owner of UKDS, Jon Thornes, said 'we are absolutely delighted that we have managed to agree terms for the purchase of Rock Farm Dairy.

'With the future of the dairy secured we can now concentrate all our efforts into growing the business, creating new local jobs and continuing to produce the highest quality, locally produced milk and dairy products for our thousands of customers across the North of England.

'I am a passionate believer in the importance of supplying local milk for local people. Customers increasingly want to know where their milk comes from and trust the quality of the source. Rock Farm has traditionally been a local, family run dairy that enjoyed these qualities in abundance and we intend to keep it that way.'

UKDS is planning to invest over £2 million in order to build a solid platform for sustainable, long term growth for the business.

The new enterprise will be owned by UKDS but will continue to trade as Rock Farm Dairy, thus preserving the 105 year heritage of the brand.

'This agreement marks the dawning of an exciting new era for Rock Farm. It means that we can fully focus our attention on driving the business forward and we have ambitious plans for growth. These plans include developing our already extensive range of milk and dairy products to better meet the needs of our customers and hopefully creating more local jobs in the process' said UKDS manager John Gregory.