Richard Hill and Barry Jones of KPMG in Bristol have been appointed joint administrative receivers of Grower Marketing Services Limited (GMS). Their appointment followed increasing requirement for additional funding which was not sustainable.
GMS, which has 144 employees, commenced trading in 1918 as a grower co-operative and became a private limited company in 1998.
The company introduced a number of initiatives to address the increasing commercial pressures, including the acquisition of a prepared produce business, substantial upgrading of its purpose-built main premises in Pershore and various joint venture arrangements to improve its range of services and supplies.
But despite the initiatives, the core business of supplying fresh fruit and vegetables remained unprofitable.
Hill said: 'Despite the losses, there are parts of the business that are profitable and will be attractive to competitors. Our strategy is to hold the business together whilst seeking buyers for all or parts of the business. This will ensure we obtain maximum value for the assets of GMS which will benefit its staff and creditors, many of whom are also shareholders.'
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