UK frozen-desserts maker Polestar Foods has been sold to private-equity firm Privet Capital to prevent the “immediate collapse” of the business, it emerged today (1 December).
Polestar, which was set up last year following the acquisition of two desserts businesses from Heinz, is being restructured, the private-equity firm said.
Administrators KPMG have been called at one of the two former Heinz units, Leamington Desserts. Privet Capital plans to restructure the business and focus on the second unit, Okehampton Desserts. The private-equity firm said 255 jobs had been secured.
“Privet’s investment will support Polestar’s working capital requirements at Okehampton. It will also provide the company with a renewed focus, increased financial strength and a clear strategic plan, thereby ensuring that the company is well placed to continue as one of the UK’s leading manufacturers and providers of frozen desserts for many years to come,” Privet Capital director Ian Astley said.
“Despite exhaustive efforts in considering the future of the company, regrettably, we have been forced to appoint administrators to the significantly loss-making Leamington factory. We look forward, however, to working with Polestar and enabling the company to realise its considerable potential.”