More than half the workforce at DBC Foodservice have been made redundant and the figure is likely to rise, administrators have warned.

As many as 561 of DBC’s 983 staff have been made redundant since the company entered administration last Tuesday. Some 274 of those have lost their jobs in the last week.

Around 209 employees transferred to Vestey Foods Group, which bought the £70m-per-year contract to supply the Ministry of Defence from DBC’s Petersfield and Dundonald depots. DBC’s Cardiff depot has closed, with the loss of 27 jobs, and seven out of eight staff at Warrington have lost their jobs.

Administrators from Baker Tilly are operating a “controlled wind down” of activity from the remaining seven depots and head office. If no buyers come forward for the business at the other depots, it is likely the remaining 213 staff will be made redundant.

“We’re continuing to sell our remaining stock to customers but we’re not buying any new stock,” said joint administrator Russell Cash.

“We’re still receiving expressions of interest but it’s better to use the word ‘hopeful’ rather than ‘optimistic’ that anything else really positive can be achieved. Most of the interest is in assets such as properties and stock rather than parts of the business.”

Anyone made redundant from DBC is entitled to statutory redundancy payment as well as any payment arrears, accrued holiday pay and payment in lieu of notice. They will become unsecured creditors for any additional redundancy payment in their contracts.

DBC entered administration last week and owes trade creditors and the banks around £65m. The company recorded a £4.95m loss in the year to 25 March 2011 and was on course to lose a similar sum this year.

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