35 jobs go as North Wales abattoir goes bust

by - 11/05/2012

"Sher Halal Foods Limited and United Halal Foods Limited, which operate out of their facility on Caernarfon’s Cibyn industrial estate, filed for administration on Tuesday, May 1.

The news means that around 35 jobs will be lost from the slaughterhouse."

Sher Halal Foods Limited and United Halal Foods Limited, which operate out of their facility on Caernarfon’s Cibyn industrial estate, filed for administration on Tuesday, May 1.

The news means that around 35 jobs will be lost from the slaughterhouse.

Insolvency firm SFP has been appointed administrators of both firms after they encountered financial difficulties leading to combined debts of almost £650,000.

Daniel Plant, group partner at SFP, said: "Recent problems with cash-flow have caused a cessation of trading.

"Despite having a substantial turnover, Sher Halal Foods Limited and United Halal Foods Limited were both unable to continue trading.

"We are undertaking a marketing campaign for a sale of the business and assets.

"The problems faced by the two businesses suggest an increasingly tough environment for the food processing industry, coming as they do so soon after the failure of the Lincolnshire Prime Meat Company earlier this year."

Irish-Pakistani firms Sher Halal Foods Limited, an abattoir which produces meat and poultry meat products, and United Halal Foods Limited, that deals with the production and preservation of meat, and have an annual turnover of approximately £12 million.

In February 2009, they agreed a deal to buy the former Cig Cibyn slaughterhouse in Caernarfon, from administrators CLB Coopers and Gwynedd Council.

The latest episode marks another chapter in the site’s troubled past.

In October 2008, Cig Cibyn closed as a result of the economic downturn and falling meat prices, with the loss of 73 jobs.

Its predecessor Cwmni Cig Arfon folded in 2004 leaving a trail of debts, including thousands of pounds owed to local farmers.

Sher Foods took over the business with commitments to upgrade the facility and streamline working practices to improve productivity, selling mainly halal products to a worldwide market.

In May 2010, councillors gave the company the green light to enlarge the existing site and erect a two-storey building for offices.

The owner, Arfan Sher Rafique, had hoped the facility would employ as much as 150 people there in the long term, however, both companies only employed around 35 people at the time they went into administration.

Caernarfon Mayor Ioan Thomas said he was disappointed with the news.

He said: "I was disappointed hearing the news that Sher Halal Foods Limited had gone into administration, but not totally surprised.

"In recent conversations with farmers and union representatives it was clear that the company was having difficulties.

"Local farmers have lost out when previous operators of the site encountered financial difficulties and I hope that farmers have not been affected this time.

"In the present economic conditions cash flow is becoming an increasing problem.

"A company may have a strong order book but without having ensured sufficient cash flow provision it will encounter difficulties and banks now seem reluctant to help."

More Details: http://www.dailypost.co.uk/news/north-wales-news/2012/05/10/35-jobs-go-as-north-wales-abattoir-goes-bust-55578-30940938/