Rivington Biscuits plans to slash 99 jobs, thanks to the falling value of the pound which has thrown the company into administration.
Russell Cash and Ben Woolrych, joint partners at FRP Advisory claimed the redundancy of 99 staff was the only viable option they had.
The rest of the staff numbering 24 will help the administration with the present transactions to ensure that the current orders are fulfilled in the New Year.
Currently, Rivington has a total staff of 123 working at its two factories in Harderwijk and Wigan, The Netherlands.
According to the administrators, the company experienced tough conditions over the past year. This put a lot of pressure on its profit margins as well as cash flow.
FRP Advisory alleged that the sharp decline in the value of the pound against the euro worsened the problems.
A Record 31-Year Low against the US Dollar
After the UK’s surprise vote to quit the European Union in June, the value of the pound nosedived to a record 31-year low against the US dollar.
Cash was reported saying: “A sustained deterioration in trading conditions and significant additional pricing costs since the summer following the sharp fall in the value of the pound, left the business facing unsustainable cash-flow pressure”.
He added: “Rivington Biscuits continues to trade through administration but with a reduced staff base in order to fulfil current orders into the New Year.”
Discussion between the joint administrators and major clients and suppliers are being planned. Those with an interest in either acquiring the business or portions of it have been requested to get in touch with the firm.
Cash further regretted the decision saying: “We have had to take the difficult decision of making a large number of redundancies and our immediate priority is to assist those staffs who have lost their job to make timely claims with the Redundancy Payments Service.”
Rivington is famous for making an assortment of wafer biscuits, such as renowned popular pink safer biscuits which are made for supermarket own-label as well as sold under the ‘Pink Panther’ brand.
Meanwhile, the jobs of 13 workers have been “rescued” by the sale of a West Midlands bacon maker after it entered liquidation. This occurred partly because of mounting costs triggered by the UK’s Brexit vote.