A major Irish fruit and vegetable supplier has been taken over by Total Produce after it was put into receivership by its bank.
Groomes Fresh Produce, based in north county Dublin, has been in business for more than 20 years, but had recently been struggling. The multi-million euro takeover - the exact price was not disclosed - safeguards 45 staff jobs at Groomes, while its growers will not be affected by the changeover.
Groomes supplies to retailers across Leinster, including leading chains such as Spar and ADM Londis, and had recently moved to a modern distribution centre. However, company accounts revealed it was attempting to restructure the business to meet “the challenging demands of the current environment”.
Last week, Ulster Bank, which had been providing credit facilities, decided to pull the plug, putting the business into receivership. Accountant and receiver Michael McAteer, later organised its sale to Total Produce.
Colm Warren, a veteran of the Irish trade and a prime mover in establishing the Dublin Meath Growers’ Co-operative, said that while he was saddened by the company’s collapse, he wasn’t surprised by it. “It’s symptomatic of what is happening across the Irish trade, with the huge price pressures that are being imposed on intermediaries and growers by the big supermarkets.
“That pressure is relentless and has been exacerbated by the economic crisis. The multiples, which are making large profits, squeeze their suppliers and they, in turn, squeeze the growers. In the end, someone has to break.”
