Fruit First Ltd has ceased trading with effect March 14.

Fruit First Ltd was an independent fruit-packing venture, which started in 2007, bringing together Great Cheveney Farms, Gaskains Packing Services, Clockhouse Farms, and Worldwide Fruit.

Some £7 million was invested to build a top-fruit storage, grading, packing and distribution facility in Faversham, Kent.

A statement from Fruit First said: “The majority shareholders of Fruit First Ltd were at an extremely advanced stage of negotiations with an external investor group to bring in new capital and management to the business which would have secured its future and the continued employment of its staff.

“At 2.45pm on March 13, at a time when the majority shareholders and the investor group were engaged in negotiations with Worldwide Fruit Ltd, for the purpose of concluding an agreement to take the business forward, a winding up petition was served on the company by Worldwide Fruit Ltd. Despite Worldwide Fruit’s actions, the negotiations continued between the parties.

“Regretfully, Worldwide Fruit’s requirements were unacceptable to both the majority shareholders and the investment group, and the negotiations collapsed. In the light of these circumstances, the directors have with great regret, and having received professional advice, concluded that the only available course of action is for the company to cease trading,” the statement continued.

“Over the last three months, the packhouse has operated efficiently due to the significant efforts of the staff, and this has also led to the company being awarded the British Retail Consortium Higher Level, with no minor or major non-conformances. It was as a result of achieving and maintaining these high levels of performance that enabled the directors to attract an external investor group.

“It is therefore particularly disappointing that this course of action has been forced upon the directors.”

A statement from Worldwide Fruit said: “As the largest creditor, Worldwide Fruit had worked closely with the other shareholders in the business and potential outside investors to try to find a way forward. Sadly, we found the expectations of the other parties to be far in advance of what we believed to be realistic. Our proposals, which would have saved the business, were rejected, leaving us with no option but to serve a winding up petition on Fruit First Ltd.

“Worldwide Fruit will now commence implementing contingency packing plans, that will ensure that we continue to deliver great service to our customers and suppliers.”

Fruit First Select Ltd, a separate and independent company that operates a grape and kiwi packhouse for Richard Hochfeld Ltd, remains unaffected.

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