UK suet maker Q Cold has entered administration following the loss of a “key supply contract”, administrators FRP Advisory confirmed this morning (24 June).
FRP Advisory partners Chris Stirland and Philip Watkins, along with FRP director Nathan Jones, have been appointed joint administrators for the group.
The company continues to trade while a buyer is sought for the on-going business.
Commenting on the news, Stirland emphasised Cold Q was a “solid, profitable company” that “only recently had to bear a sharp deterioration in its trading conditions”.
“The company suffered from the recent termination of a key supply contract with a major customer which had accounted for around half of the company’s turnover. The supply contract termination, together with an on-going dispute with HMRC relating to the reimbursement to the company of overpaid VAT monies relating to that supply contract, has put a squeeze on cash flow,” Stirland explained.
While Q Cold continues to fill its remaining orders, the reduction in income due to the loss of the group’s largest contract has meant that some layoffs will be necessary, the administrators said. At the time it entered administration, Q Cold employed 40 people. Worker consultations have commenced.