MALTON-based hotdog manufacturer Westler Foods has gone into administration.
The profitable business, which employs 200 people, found a funding gap of more than £15 million in financing its defined benefit pension scheme, during an evaluation in early 2009.
After trying to plug the gap with internal and external investment during the past year, the business has now appointed Howard Smith and Mark Firmin of KPMG’s Restructuring practice as joint administrators.
Nine employees, who weren’t directly involved in production, have already been made redundant.
Howard Smith said: “This is an uncommon and unfortunate situation of a well run and profitable business being compelled to enter insolvency specifically because of the scale of its pension deficit.
“The company has a number of extremely interesting contracts so we are trading the business as a going concern while seeking a buyer.”
The business produces of a canned and pouched food products for brands, including Westlers, Multi Menu, Tyne, BigMex, Chesswood, Wayfayrer, Military Rations and Compleat, which are sold in supermarkets, funfairs, cinemas and other leisure venues.
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