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Pork Producer & Wholesaler Enters Administration

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Written by:

Jemima Idowu

Published on:

23/05/24

FA Gill at Parkfields, Wolverhampton, a renowned Black Country sausage-maker founded in 1938, has entered administration. Mike Dillon and Rochelle Schofield of Leonard Curtis, Manchester, were appointed as joint administrators on Tuesday, May 14.

The historic pork producer and wholesaler faces an uncertain future after filing a second notice of intention (NOI) to appoint administrators earlier this month, following an initial filing by representatives from Addleshaw Goddard. FA Gill, known for its Gills Sausages, began in 1880, working with local butchers and establishing a bacon factory at Parkfields in 1934. Its operations remain there to this day.

In April of last year, the family business was acquired by HLD Electric, which subsequently moved its registered office to Winfield, Leicester. Despite its long history and reputation, FA Gill has struggled with recent challenges. The company, which employed 211 staff and reported a turnover of £39.4 million in 2021, has laid off some employees due to a lack of supply of pigs for slaughter. This shortage has severely impacted the company’s ability to maintain operations.

The NOI provides the firm with temporary protection from creditors while it seeks a path forward. Directors have highlighted ongoing difficulties stemming from the pandemic, including staff absences and additional costs associated with changing restrictions. They also cited Brexit-related regulations, which have created a low pig price.

In their last accounts before the acquisition, FA Gill posted a loss of £172,000, which was retained by its reserves. The directors noted that regulators “are still acting as if unaware of the real challenges presented by Covid and Brexit.” Despite these challenges, the company remains hopeful that a resolution can be found to secure its future.

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