Historic Kendal Mint Cake manufacturer Wilson’s has ceased trading with the loss of more than 120 jobs after collapsing into administration for the second time in nine months.
Creative Confectionery (Holme) Ltd, which was set up last year to rescue JE Wilson & Sons, has been forced to call in administrators after hitting financial difficulties once again.
The factory closed down, with all 121 employees made redundant, two weeks before the appointment of RSM Restructuring Advisory administrator on 12 February.
The business, initially founded in Kendal in 1913 and owned and run by the Wilson family for four generations, was sold in a pre-pack administration deal in May 2015 after a costly relocation to a purpose-built 40,000 sq ft factory in Holme in 2013.
“Unfortunately due to significant cashflow difficulties the company has been placed in administration,” Jeremy Woodside, RSM partner and one of the administrators, said. “We are marketing the company’s assets.”
Wilson’s, which also owned the Creative Confectionery, Duncan’s and Coco Lane brands, expanded rapidly in the past 25 years, diversifying into specialty chocolate manufacturing for high street retail customers.
Sales jumped almost 50% to close to £7m in 2014 as the new site boosted capacity dramatically, with the business manufacturing more than two million chocolates a week over five production lines. However, increased borrowings put serious pressure on cashflow.
Managing director Andrew Wilson, the grandson of the founder, set up Creative Confectionery (Holme) to buy the failed business out of administration. The new company was majority owned by own-label gravy maker Goldenfry Foods, with Wilson retaining a 25% stake. The deal was part-funded by invoice finance firm Bibby Financial Services.
“I’m delighted to have preserved the future of a third-generation family firm,” Wilson said at the time. “Our new partners have exceptional experience in the food industry, and have made a huge success of all that they do. We can learn a lot from them as our business develops.”
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