Interpath appointed to Leicestershire food firm administration
Simtom Food Products has named Interpath Advisory as the firm to oversee its administration. The news jeopardises around 100 jobs across Leicestershire.
Founded in 1977, Simtom Food Products is a food manufacturer which specialises in a range of sauces. From traditional Indian marinades to pickles and chutneys, the firm has supplied local supermarkets and catering businesses for more than 40 years.
However, the firm, based in Desford Leicestershire, has faced a difficult last few years. The family-owned enterprise had invested heavily in growing its operations, before its plans for implementation were hampered by the onset of the Covid-19 pandemic and subsequent lockdowns.
The delay on a return on this investment piled pressure on the business. While it reported a turnover of £18 million in the 18 months to 31 March 2020, and claimed sales rose by 17.7% in that time, the firm admitted to “reduced profit margins caused by the continued backdrop of economic stability.” Now, this has finally ended in the firm entering administration, and appointing Tim Bateson and Howard Smith from Interpath Advisory to oversee the process.
Joint administrator Bateson said, “The Covid-19 pandemic has significantly impacted the implementation of Simtom’s strategic plans which when coupled with the recent labour shortages has had a significant impact on this award-winning food manufacturer.”
The company directly employed around 60 people, supplementing this with an additional 40 agency workers. The majority of these staff had already been made redundant before the appointment of the joint administrators, while the rest now depend on the swift sale of Simtom’s assets.
Bateson added, “Our immediate priority is to support those employees who have been made redundant, providing them with the information and support they need to make claims via the Redundancy Payments Office. We will be seeking offers for the business and its assets, and would encourage any interested parties to make their interest known at the earliest opportunity.”
