A DAIRY that employs 88 people has gone into administration.
Rock Farm Dairy, in Wheatley Hill, has gone into administration and staff have been told their future is dependent on brokering a quick deal.
The company, which has an annual turnover of around £17m, processes and bottles milk and cream which is distributed across the North of England.
The firm’s facility in Wheatley Hill processed 150,000 litres of milk a day.
Stephen Oldfield and Ian Green of PwC were appointed as joint administrators by the company directors.
A statement from the administrator said: “The appointment is a result of disappointing trading performance due to a significant rise in bad debts from customers combined with an increasing cost base, and difficulties passing price increases on to customers. This has had an adverse effect on margins, culminating in the business experiencing liquidity difficulties.
“Following the appointment of administrators, the business has suspended trading with immediate effect.
“The administrators are working to secure a third party interested in a tolling arrangement where the company facilities would be used for a fee payable to the administrators. “Employees have been told their position will depend on the result of urgent talks with potential tolling partners during the coming days.
Stephen Oldfield, joint administrator and PwC partner, added: “Trading has suffered in recent months and the administration is clearly disappointing news for all of the stakeholders, and employees in particular.
“However, we are looking to secure a rapid tolling agreement for Rock Farm Dairy. We are very keen to speak to anyone who might have an interest in such an arrangement.”