Howard Smith and Rick Harrison from Interpath Advisory were appointed joint administrators of Hider Food Imports Limited on Friday 15 October 2021.
Incorporated in 1965 and based in Hull, Hider Foods is a leading importer, processor and packer of nuts and dried fruit to both retailers and the food service sector.
The COVID-19 pandemic, coupled with changes to import rules following Brexit, had a materially adverse impact on the Company’s financial performance, as the Company experienced significant disruption to its supply chain and a reduction in demand, as some customers temporarily closed their operations.
In response to these challenges, the Company’s management team implemented several strategic cost reduction and turnaround initiatives, including the sale of the Company’s branded wholesale division in May 2021. However, despite this, the Company continued to be loss-making, resulting in a significant deterioration of the Company’s working capital position and increased creditor pressure. Due to this, the directors took the difficult decision to place the Company into administration.
Immediately following their appointment, the joint administrators sold the business and assets to a newco. A total of 32 members of staff have transferred to the purchaser, although regrettably, 15 employees have been redundant.
Howard Smith, managing director at Interpath Advisory and joint administrator, said: “We’re pleased to have been able to conclude this transaction which not only safeguards the majority of jobs, but which has allowed for the sale of the business without impacting the continuity of business operations.”