North Yorkshire-based pork pie manufacturer Vale of Mowbray has collapsed into administration with the loss of 171 jobs.
Around 50 staff have been retained in the short term as administrators wind up the family-owned business that operated from two sites in Leeming Bar and produced more than 1.5 million pies a week.
Administrators from advisory firm FRP said the business has experienced significant financial challenges due to rising raw material prices, increasing energy costs and recruitment challenges.
Attempts had been made to attract new investment into the business, but these had been unsuccessful, and the company entered administration last week.
Describing Vale of Mowbray as a proud family business with a loved brand, FRP partner and joint administrator Martyn Pullin said: “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 and in the meantime are preparing to wind up the business’ operations and move towards an asset sale.”
The sale will include Vale of Mowbray’s two freehold manufacturing sites, plant and machinery, and intellectual property.
The collapse of the business, which first produced pork pies in 1928, comes just five months after Vale of Mowbray announced a £4m investment in NPD and equipment to launch Scotch eggs. This had included the creation of 30 new jobs and the installation of machinery including a large fryer capable of producing 500 Scotch eggs a minute.
A four-day working week had been introduced at the business a year ago, with bosses saying this would boost efficiency and would be better for staff.
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