PoleStar's frozen desserts factory in Okehampton has been sold, but industry experts are already questioning how viable it would be to resume production in the "graveyard" category.
FRP Advisory was appointed administrator of own-label desserts and Heinz branded products supplier PoleStar and Okehampton Desserts earlier this month.
The company's site in Devon attracted interest from more than 18 parties but FRP said it had received only one viable offer from Devonshire Desserts, which was set up specifically to acquire the assets by the Wood family, owners of West Yorkshire-based frozen desserts manufacturer Country Style Foods.
FRP sold the plant, machinery and freehold to the company this Tuesday.
Devonshire said it was now engaged in a "detailed evaluation" of the plant but would not reveal its intentions for the plant.
Industry sources said restarting production would be brave. "It's three or four weeks since they produced what commitments have customers made to alternative suppliers?" said one M&A expert.
Another industry insider questioned the allure of the business given overcapacity in the retail frozen desserts market. "It's a completely bombed-out category and has been for years."
"Retailers are reaping what they sowed. No-one is making any margin and businesses are going bust. The whole segment is a bit of a graveyard."
Chris Ormrod, MD of foodservice manufacturer Ministry of Cake, added: "Anybody buying it will have to put volume in quickly or run a significantly scaled-down version."
PoleStar was formed in December 2009 following the acquisition of Heinz's UK frozen desserts business. Heinz retains ownership of its WeightWatchers, Heinz and Ross frozen desserts brands, but PoleStar secured a co-pack agreement for their production.
Heinz said it had inventory to cover base sales for "a reasonable period of time". It is now understood to be looking for an alternative co-pack agreement.
FRP Advisory was appointed administrator of own-label desserts and Heinz branded products supplier PoleStar and Okehampton Desserts earlier this month.
The company's site in Devon attracted interest from more than 18 parties but FRP said it had received only one viable offer from Devonshire Desserts, which was set up specifically to acquire the assets by the Wood family, owners of West Yorkshire-based frozen desserts manufacturer Country Style Foods.
FRP sold the plant, machinery and freehold to the company this Tuesday.
Devonshire said it was now engaged in a "detailed evaluation" of the plant but would not reveal its intentions for the plant.
Industry sources said restarting production would be brave. "It's three or four weeks since they produced what commitments have customers made to alternative suppliers?" said one M&A expert.
Another industry insider questioned the allure of the business given overcapacity in the retail frozen desserts market. "It's a completely bombed-out category and has been for years."
"Retailers are reaping what they sowed. No-one is making any margin and businesses are going bust. The whole segment is a bit of a graveyard."
Chris Ormrod, MD of foodservice manufacturer Ministry of Cake, added: "Anybody buying it will have to put volume in quickly or run a significantly scaled-down version."
PoleStar was formed in December 2009 following the acquisition of Heinz's UK frozen desserts business. Heinz retains ownership of its WeightWatchers, Heinz and Ross frozen desserts brands, but PoleStar secured a co-pack agreement for their production.
Heinz said it had inventory to cover base sales for "a reasonable period of time". It is now understood to be looking for an alternative co-pack agreement.
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