A three-generation Somerset family firm, the largest supplier of cut chrysanthemums in the UK, has been forced into administration through "a combination of competition from cheap imports, gas price increases, and the huge costs of complying with government legislation".

Frank Rowe Ltd is a major supplier of cut chrysanthemums and pot plants to supermarkets and other major retailers throughout the UK. However, the company said that during the last five years, competition from cheap imported plants and blooms has coincided with patchy demand and lower than average prices for chrysanthemums to pile on the pressure.

Sales to its main supermarket customer have been 30 per cent down year on year, and the huge gas price increase forecast for this winter prompted directors to call in professional help. An additional pressure has been the fact that, following the Enterprise Act and the loss of Preferential Creditor status for the Inland Revenue and Customs and Excise, these bodies are now no longer allowing phased payments from companies in financial difficulty, but are insisting on payment in full.

The joint administrators are Ian Walker and Andy Beckingham of Begbies Traynor, the UK's largest independent network of corporate recovery and insolvency specialists. Ian Walker said: "Administration gives the company breathing space for us to consider all options, including whether to restructure the company or sell the business. At the moment we are still trading and will continue to do so whilst plans are formulated. However, very regrettably, we have had to make 15 staff redundant. The pot plant production part of the business has performed up to budget in a difficult year, and the company has been focusing on it in the past few months.

"Unfortunately, the business has run out of time to complete the refocusing process. Frank Rowe Ltd is a prestigious name in the horticultural industry, and we will work hard for the best possible outcome for all stakeholders."

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