An historic North Yorkshire pie factory has shut with the loss of 200 jobs due to ‘significant financial challenges’ brought about because of rising energy costs.
On Wednesday, administrators were called to Vale of Mowbray, based in Leeming Bar near Northallerton – a family run business which has been making pork pies for almost a century.
Read more: Vale of Mowbray at Leeming Bar in North Yorkshire collapses with 200 jobs at risk
The administrators said the business, which was opened as a brewery in 1795, has experienced “significant financial challenges” in recent years due to rising raw material input prices, increasing energy costs and sector-wide recruitment challenges.
Despite attempts to attract fresh investment into the firm, officials said there has been no viable offers and there were not enough resources to continue trading, leaving them no choice but to close the firm, which employed 219 people.
Read more: Vale of Mowbray at Leeming Bar in administration: What we know so far
The Northern Echo understands staff were told the news during a meeting that was held on Wednesday with company bosses. They were then told their jobs would be made redundant as the firm could no longer continue operating.
171 people have already been made redundant. The remaining staff have been retained in the short term as the Joint Administrators wind up the operations of the business and move towards an asset sale of its two manufacturing sites in Leeming Bar.
Vale of Mowbray had established itself as the UK’s leading pork pie brand, making 1.5 million pies a week.
Read more: Vale of Mowbray: The quick demise that even a nation of pork pie lovers couldn't stop
Martyn Pullin, Partner at FRP and Joint Administrator of Vale of Mowbray Limited, said: “The Vale of Mowbray was a proud family business with a loved brand that has been synonymous with pork pies for generations. But the increasingly difficult trading conditions being experienced by many energy and labour intensive manufacturing businesses have ultimately led to the business’ closure.
“We are urgently calling on any interested parties to come forward. In the meantime, we are preparing to wind up the business’ operations and move towards an asset sale in line with our statutory obligations. We are on site and supporting staff, through what is an extremely challenging time, as we support claims to the Redundancy Payments Service.”
Rishi Sunak, MP for Richmond, expressed his concern about the news.
He said: “Vale of Mowbray is a significant local employer with a proud history. Having visited the factory a number of times I know the quality of its products and its loyal workforce.
Earlier in the day, Mr Sunak said he would be "monitoring the situation closely" and "hoped the business could be retained at Leeming Bar”
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