One of the UK’s largest food-to-go suppliers, Adelie Foods Group has called in administrators following weeks of rescue talks, and has ceased supply to over 2,000 convenience stores and forecourts.
The Heathrow-based firm furloughed a large portion of its 2,000 employees in March under the Government’s job retention scheme.
Adelie, which has brands such as Urban Eat - the UK's number one sandwich brand, supplies coffee shop chains like Caffe Nero and supermarkets including Aldi.
Deloitte has been appointed to handle an insolvency process, said to be assessing if it can save the company from administration by arranging a rescue deal. Listed food supplier, Greencore and another market player, Samworth, are said to be in talks about potential deals to save Adelie.
Joint administrator Rob Harding, a restructuring partner at Deloitte, said, “The current pandemic is having a devastating effect on consumer-facing businesses and suppliers into them, such as Adelie.
'The impact of COVID-19 on the Company’s order book resulted in a material funding requirement and, as a result, we have been working hard with Adelie’s management to try and secure a buyer to ensure the right longer-term future for the business.”
Adelie has been owned by Intermediate Capital Group since 2016, following the loss of key contracts with Asda and Sainsbury's.
