Does every little help?
The price war with the supermarkets is being blamed for the increase in the number of food producers entering into formal insolvency procedures.
The number of liquidations for the last twelve months has fallen by around 10%, however, the number of food companies entering into an insolvency process has risen by 28%.
Many food producers blame the cut throat competition which happening on the shop floor as the major supermarkets struggle to compete with the new discounters such as Aldi.
Questions have been raised about the buying practices used by the supermarkets and food producers are often caught in a very difficult position between needing to challenge the supermarkets if they try and squeeze them and maintain a working relationship with a major customer.
It is imperative that food producers act very quickly if their prices are being chipped by the supermarkets.
It is important that directors take professional advice and if needed seek advice from a licensed insolvency practitioner as soon as possible.
To take advantage of our free consultation, please telephone Stella Flemmings on 01377 257788, 01724 230060 or 01904 520116 and she will make you an appointment with one of our insolvency professionals.
Redman Nichols Butler has had a York office for six years now and specialises in advising SME businesses in York and North Yorkshire. The Redman Nichols Butler York office address is Westminster Business Centre, Nether Poppleton, York, YO26 6RB.
John, Andrew and Mark have all advised food producers in the York, Tadcaster and Wetherby area.
Redman Nichols Butler has had a Driffield office for 18 years and specialises in advising SME businesses in Hull and East Yorkshire. The Redman Nichols Butler Driffield office address is Maclaren House, Skerne Road, Driffield, East Yorkshire, YO25 6PN.
Redman Nichols Butler has had a Scunthorpe office for 4 years and specialises in advising SME businesses in Scunthorpe, Grimsby and all over North East Lincolnshire. The Redman Nichols Butler Scunthorpe office address is Suite 8b, Normanby Gateway, Lysaghts Way, Scunthorpe, DN15 9YG.