The final report on a collapsed Alsager firm has been filed by its liquidator.
Freshpack closed in 2018 after failing to find a buyer, with potential buyers reportedly put off by the low margins available within the industry.
The family-owned business went into administration in June 2018. Sixty workers lost their jobs after another 10 were previously made redundant.
The affairs of the company are now fully wound up.
The report said a dividend to ordinary preferential creditors of 100p in the pound totalling £21,233.76 was paid on 28th June 2019 by Dunham Dean Advisory.
A dividend to unsecured creditors of 50p in the pound was paid on 18th July 2019 with a second interim dividend to unsecured creditors of 5p in the pound was paid in February 2020. A third and final dividend to unsecured creditors of 12.87p in the pound was declared in May this year, totalling £315,2665.
Alongside the final dividend, equalising dividends totalling £25,152.14 were paid to three creditors who did not receive the earlier distributions.
Founded in 1952, Freshpack made pies, ready meals and snacks for frozen food retailers and discount stores under its namesake brand and private label.
Matt Dunham, of administrators Dunham Dean Advisory, said at the time: “The convenience food sector is the subject of intense competition, particularly at the value end of the market, and the fall in sterling has forced up costs. The margins that Freshpack could achieve were simply not sufficient to make it attractive to a buyer.
“While the business initially attracted strong interest, and we have been in discussion with a number of parties, none of them felt able to conclude a deal. After the only remaining buyer walked away this week, there was no alternative but to cease trading.”
The appointment of liquidators came as a result of the conversion from the previous administration. Funds of £1,808,992.58 were received from the administration estate, and £186,852.72 from the former liquidators.
The liquidators realised book debts from both a pre-administration period of £20,200.51 and an administration trading period of £10,5706.
Bank funds of £2,761.70 were received into the liquidation representing the credit balance held by the company in a Euro bank account.
The liquidators had to wait for a refund from HMRC in relation to VAT paid during the administration and former liquidators’ appointment, and a VAT refund totalling £180,124.62 was eventually received.
The “significant” delay over the VAT meant the liquidators’ bill increased to £213,623.
(Photo: Google Earth).
