A company that supplies meat to a variety of businesses, including hospitality, catering, schools and care homes, has gone into administration following an investigation by the Food Standards Agency (FSA).
The FSA investigation meant Russell Hume had to recall its meat products and many customers subsequently stopped using them as a supplier.
According to the BBC, the directors of the company said that the actions of the FSA had "created impossible trading conditions for us" and that it had no choice but to go into administration.
The administrators of the company, which has production bases in Fife, Liverpool, Birmingham, London, Boroughbridge and Exeter, have had to make 266 members of staff redundant. They are also currently seeking potential buyers for the business and its assets.
A statement on the FSA website said that:
“There is no indication that people have become ill from eating meat supplied by Russell Hume. However, we are concerned about the poor practices in place at their premises so that is why we have taken proportionate action to ensure no meat can leave their sites at present. We are continuing to assess the situation.”
However, the firm’s directors said that while they would cooperate with the FSA investigation, they felt that "its action has been out of all proportion to the concerns it says it has identified”, reports the BBC.
Administration provides the company protection from action taken against it by creditors and offers breathing space to consider a rescue plan. The administrators take over the management of the company and are responsible for realising assets on behalf of all creditors.
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