Administrators have been appointed to Tillery Valley Foods Limited, an Abertillery-based supplier that employs 250 people. Most of these employees have been made redundant, with only a small group retained to help with an "orderly wind-down" of the business.
Tim Bateson and Will Wright from Interpath Advisory were appointed joint administrators to the company on May 17, 2023. This follows several months in which the company's directors tried to solve cashflow problems driven by inflation in food and energy prices.
A statement from Interpath Advisory reads: "Over the past 12 months, the company has experienced significant inflation across its fixed cost base, driven principally by increases in food and energy prices, which in turn has had a detrimental impact on cashflow. Consequently, the directors worked with their advisors and key stakeholders to find a solution, including marketing the business for sale and agreeing increased prices with customers, but unfortunately, no solvent solution could be found.
"Following the appointment of the joint administrators, operations at the Company’s base in Abertillery ceased and regrettably, the majority of the Company’s workforce have been made redundant. The administrators have retained 24 employees to assist them as they undertake an orderly wind-down of the business."
Tillery Valley Foods was founded in 1982 and supplies meals to the health, education and local authority sectors including 30 NHS Trusts in England. The closure comes as another blow to south Wales' food industry which was recently hit by the closure of Garth Bakery in Abercynon.
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Source: Wales Online
Date: 6 June