YORK jobs with the chilled food business Albert Fisher Group plc and Fisher Foods Ltd, have been saved.

About 280 positions at Fisher Foods, which has a huge factory at Skelton, were safeguarded after receivers announced that the collapsed company has been sold.

The operation has been bought from administrative receivers KPMG by U.S. giant Fresh Del Monte Produce's UK subsidiary.

KPMG was appointed administrative receiver to Albert Fisher last month after the foods group ran up debts amounting to an estimated £100 million.

The city firm would not disclose the price paid for the chilled foods business, but said 1,250 jobs across three sites - at York, Wisbech and Methwold, in Norfolk - had been saved.

The York plant will continue to make dressed salads and dips for a range of blue-chip clients.

Fresh Del Monte Produce is one of the world's largest producers of fresh cut fruit and vegetables.

It is not linked to Del Monte Foods.

At the beginning of last year, management at Fisher Foods hoped to sell the factory at Skelton Park to developers in order to fund a move into a new, bigger 85,000 sq ft factory elsewhere in the region.

But the scheme fell foul of planners because of the perceived traffic that any housing projects might generate on the site, which is outside the village of Skelton and close to the A19.

Updated: 12:02 Thursday, June 27, 2002