Administrators have been appointed to Tillery Valley Foods Limited, an Abertillery-based supplier that employs 250 people. Most of these employees have been made redundant, with only a small group retained to help with an "orderly wind-down" of the business.
Tim Bateson and Will Wright from Interpath Advisory were appointed joint administrators to the company on May 17, 2023. This follows several months in which the company's directors tried to solve cashflow problems driven by inflation in food and energy prices.
A statement from Interpath Advisory reads: "Over the past 12 months, the company has experienced significant inflation across its fixed cost base, driven principally by increases in food and energy prices, which in turn has had a detrimental impact on cashflow. Consequently, the directors worked with their advisors and key stakeholders to find a solution, including marketing the business for sale and agreeing increased prices with customers, but unfortunately, no solvent solution could be found.
"Following the appointment of the joint administrators, operations at the Company’s base in Abertillery ceased and regrettably, the majority of the Company’s workforce have been made redundant. The administrators have retained 24 employees to assist them as they undertake an orderly wind-down of the business."
Tillery Valley Foods was founded in 1982 and supplies meals to the health, education and local authority sectors including 30 NHS Trusts in England. The closure comes as another blow to south Wales' food industry which was recently hit by the closure of Garth Bakery in Abercynon.
In a statement given to ITV, Stephen Bolton, executive chairman of Joubere Ltd who own the factory, reportedly said he was "heartbroken for all our staff members and for the town of Abertillery," calling the loss of the company a "devastating blow for the town."
He is quoted saying: "I am deeply sorry that despite the best efforts of all involved we have not been able to save the business," adding that when Joubere Ltd purchased it 20 months ago, they "walked straight into the teeth of the energy crisis" and were hit with £2m in energy cost increases in their first year and subsequent inflation in ingredients and materials costs."
He also said they had "actively engaged" with the Welsh Government but said "nothing was forthcoming." A Welsh Government spokesperson said it was "deeply regrettable" that the company's outgoing leadership "did not provide the openness and transparency required" to allow time for a business plan to be developed, adding: "This extremely disappointing news will be a major blow for such a dedicated workforce, their families and the wider community.
"We have worked intensively with the local management team and Blaenau Gwent County Borough Council throughout the last week to explore options for a management buyout. The Economy Minister met the team and the plant’s union several times during that time to seek a resolution.
"The tireless efforts of the local management buyout team helped to demonstrate that a viable business is a genuine prospect at the site and we continue to consider how this could be developed further, despite today’s news, in order to secure a successful business in the longer term.
"Over a period months, we have repeatedly sought information from the leadership of the outgoing business to help prevent this outcome and develop alternative options. Unfortunately the information has not been forthcoming in a clear and timely manner.
"We will now establish an urgent taskforce alongside the local authority, Community Union, local elected representatives and DWP. This will include Welsh Government support via Careers Wales and the ReAct programme, with tailored packages of support designed to help the workforce find new job opportunities."
A spokesperson for the Community trade union said the news was "devastating" for a workforce which has "continued working above and beyond amidst great uncertainty for their futures." Rob Edwards, the union's regional secretary for Wales, said: "We are working tirelessly to support our members and again call on the Welsh and UK Governments to do all that they can to secure a future for TVF and its skilled, dynamic, loyal and dedicated workforce.
"Any potential sale of the business must be responsible and respect the needs of the workforce and local community. We will work with the current owners, the administrators and any potential buyers to ensure that workers are represented in this process."
Tim Bateson, director at Interpath Advisory and joint administrator of Tillery Valley Foods, said: "This is a tremendously sad day for the Company’s dedicated employees, a number of whom have worked for the Company for over three decades, as well as for the wider community in Abertillery.
"Our immediate priority will be to provide support to all those who have been made redundant, including supporting them with the information required to submit claims to the Redundancy Payments Office, and we are also aiming to host workshops in conjunction with local employment agencies and employers.
"Over the past few months, the directors have worked tirelessly to safeguard the future of the business, including undertaking a process to seek new investment and/or owners. They have also been in regular dialogue with key stakeholders, including local MPs, Welsh Government and NHS England, keeping all informed."
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