UK supplier Button Farm Mushrooms has been placed into administration after the loss of an unnamed “key customer”.

PwC has been appointed as the administrator for the Northern Ireland-based business, which has a growing and packing facility in Co. Armagh.

Increased raw-material costs and the contract loss had meant Button Farm Mushrooms had “faced difficult trading conditions”, PwC said.

“The business has faced a number of adverse factors, which have impacted significantly on its ability to trade profitably and these ultimately led to the directors’ making the difficult decision to appoint administrators,” PwC’s Stephen Cave said.

“Our priority is to work with the directors in assessing the immediate financial and trading position of the business and to communicate with the workforce, key customers and suppliers.

“In parallel, we will be exploring sale opportunities for the business and hope that its modern purpose built facility will attract interest within and beyond the sector.”

In November 2015, the owners of Button Farm Mushrooms invested more than GBP1.5m to expand from mushroom compost to growing, processing and marketing.