Buyers are being sought for a UK-based hydroponic salad grower which entered administration in April.
Steve Baluchi and Philip Armstrong of specialist business advisory firm FRP were appointed administrators of Madestein (UK) Ltd and Fresh Willow Ltd on 11 April.
The companies, which are based on the edge of Chichester, specialise in glasshouse grown lettuce and herbs.
They utilise advanced hydroponic growing processes for the UK’s major food retailers, foodservice companies and wholesale markets.
The firms are the sole supplier of curly leaf lettuce to a number of the UK’s largest supermarkets.
The businesses occupy a freehold site with 26,829 square metres of glasshouses, adjoining storage, packing and office accommodation, together with an array of plant and machinery.
With over 40 years’ growing experience, the companies have established a reputation in the market and strong customer book.
As a result of this, they invested substantial capital into promoting a proposal to develop a new glasshouse on a greenfield site, which unfortunately was not successful.
This investment, combined with rising energy costs and labour challenges, have left the companies unable to meet their financial obligations and they have entered into administration.
The administrators are continuing to trade the companies and ensure continuity of supply to customers while they consider all options, including the sale of the businesses as a going concern.
They have instructed property agent Savills, and specialist asset advisory company SIA Group, to jointly handle the sale.
Steve Baluchi, of Savills said: “Madestein is a well-established business with an excellent customer book and a deservedly strong reputation in the market.
"Unfortunately, despite the best efforts of the management team, it has not been able to navigate through the challenges facing the food production sector at this time.
"Our focus is now on continuing to operate the businesses to fulfil customer orders while we seek to identify new owners for the property and business.”
