FRP Advisory has been appointed as administrator to Wigan-based biscuit manufacturer Rivington Biscuits Limited.
The biscuit company said it was left with “no viable alternative other than to seek the protection of administration”, as a result of “particularly challenging trading conditions”.
Russell Cash and Ben Woolrych, partners at FRP Advisory, have been appointed as joint administrators to Rivington Biscuits. The joint administrators said in a statement that they “are trading the business to fulfil current orders while marketing for sale the business and assets”.
The company is best known for its wafer biscuits, which include the popular pink wafer biscuits made for supermarket own-labels. They are also sold under the Pink Panther brand.
At the point of administration on 13 December the company employed 123 staff, 99 of which have now been made redundant. The remaining 24 staff will be assisting the administrators with ongoing trading.
The statement from FRP Advisory said: “Rivington Biscuits experienced particularly challenging trading conditions over the past year, resulting in significant pressure on profit margins and cash flow.
“The problems were compounded by the sharp decline in the value of the pound against the euro. The company was left with no viable alternative other than to seek the protection of administration while a long-term solution can be explored, including marketing the ongoing business and assets in the interests of all stakeholders.”
Russell Cash, joint administrator and partner at FRP Advisory, said: “A sustained deterioration in trading conditions and significant additional pricing costs since the summer following the sharp fall in the value of the pound, left the business facing unsustainable cash-flow pressure.
“Rivington Biscuits continues to trade through administration, but with a reduced staff base in order to fulfil current orders into the new year.”