118 jobs sliced at Paramount Foods following administration

Posted on 10 Oct 2012

Administrators have confirmed that 118 jobs will be axed across two UK sites at pizza-maker Paramount Foods.

These redundancies will be effective immediately with 42 people losing their jobs in Salford, Manchester and 76 in Deeside, North Wales.

The food firm had employed 138 people at a site in Salford and a further 312 in Deeside, North Wales and the remaining 332 positions at the company still appear uncertain.

“Regrettably a number of redundancies were required in order to provide the opportunity to continue to trade the business in the short term,” added David Whitehouse, administrator from financial advisors Duff & Phelps.

Paramount Foods, which manufactures frozen and chilled pizzas, fell into administration on Friday after losing a large contract with Morrisons supermarket and ceased all operations.

However, operations have been restored at its two manufacturing sites in the UK following successful talks with customers.

Administrators told The Manufacturer that supermarket Sainsbury’s is “sticking with” Paramount Foods, which led to manufacturing returning to the sites.

Sainsbury’s is now the company’s main customer and is thought to account for at least 80% of its business now that Morrisons has stopped its contract.

“Administrators suspended operations while urgent discussions were held with key customers and parties interested in acquiring some or all of the business,” commented Mr Whitehouse. “As a result of the positive support from key customers, the company has resumed trading with the aim of securing an on-going trade and the sale of the business.”

A spokesperson for Duff & Phelps noted that rival food manufacturers are interested in acquiring the business, which makes both branded and non-branded products for supermarkets.