Receivers are called in at Scottish Pride

The milk market turned sour yesterday for Scottish Pride, the former processing arm of the Scottish Milk Marketing Board, when it appointed receivers at two of its main trading subsidiaries.

The company had been in talks to sell its business to Robert Wiseman Dairies in a deal which would have given Wiseman 80 per cent of the Scottish market. However, the company had been unable to reach commercially acceptable undertakings with the Office of Fair Trading.

Scottish Pride's shares were suspended at 42.5p yesterday morning pending clarification of the company's financial position. Receivers were later appointed to the two main trading subsidiaries, Scottish Pride and Scottish Pride Foods.

The company has debts of pounds 30m and last month reported increased half- year losses of pounds 2.45m. It has been suffering from a lack of capital, inefficient plants and an oversupplied market. The receivers said substantial losses in the fresh food sector and intense competition to supply supermarkets and discount retailers had been key causes of the problems. The final straw was the defection of two key customers, including Kwik Save, which stopped its dealings with Scottish Pride on Monday.

Blair Nimmo, on behalf of accountants KPMG, said: "The company has been in discussion with a number of interested parties for the sale of its trading activities. The request for the appointment of a receiver was made when, against a background of rapidly deteriorating trading, it became clear the company could not be confident that transactions for the sale of the activities would be achieved on satisfactory terms within a reasonable period of time."

Though Scottish Pride itself is not in receivership it has only limited assets. The company is based in Glasgow and employs 736 staff at 15 production and distribution sites throughout Scotland and the North of England. Group sales last year were pounds 96m. KPMG said there would be no immediate redundancies but could give no guarantees on future job security.

Scottish Pride is listed on the Alternative Investment Market. The vast majority of its shareholders are farmers who produce milk for the company.

KPMG will continue to trade the Scottish Pride businesses while undertaking a financial review. The main objective was to sell the business as a going concern, KPMG said.

Suggested Topics
Start your day with The Independent, sign up for daily news emails
News
ebookA unique anthology of reporting and analysis of a crucial period of history
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Guru Careers: Pricing Analyst

£30 - 35k: Guru Careers: We are seeking a Pricing Analyst to join a leading e-...

SThree: Trainee Recruitment Consultant

£20000 - £25000 per annum + OTE £45K YR1: SThree: At SThree, we like to be dif...

SThree: Trainee Recruitment Consultant

£20000 - £25000 per annum + competitive: SThree: Did you know? SThree is a mul...

Guru Careers: C# Project Team Lead

£55 - 65k (DOE): Guru Careers: A unique opportunity for a permanent C# Develop...

Day In a Page

Blundering Tony Blair quits as Middle East peace envoy – only Israel will miss him

Blundering Blair quits as Middle East peace envoy – only Israel will miss him

For Arabs – and for Britons who lost their loved ones in his shambolic war in Iraq – his appointment was an insult, says Robert Fisk
Fifa corruption arrests: All hail the Feds for riding to football's rescue

Fifa corruption arrests

All hail the Feds for riding to football's rescue, says Ian Herbert
Isis in Syria: The Kurdish enclave still resisting the tyranny of President Assad and militant fighters

The Kurdish enclave still resisting the tyranny of Assad and Isis

In Syrian Kurdish cantons along the Turkish border, the progressive aims of the 2011 uprising are being enacted despite the war. Patrick Cockburn returns to Amuda
How I survived Cambodia's Killing Fields: Acclaimed surgeon SreyRam Kuy celebrates her mother's determination to escape the US

How I survived Cambodia's Killing Fields

Acclaimed surgeon SreyRam Kuy celebrates her mother's determination to escape to the US
Stephen Mangan interview: From posh buffoon to pregnant dad, the actor has quite a range

How Stephen Mangan got his range

Posh buffoon, hapless writer, pregnant dad - Mangan is certainly a versatile actor
The ZX Spectrum has been crowd-funded back into play - with some 21st-century tweaks

The ZX Spectrum is back

The ZX Spectrum was the original - and for some players, still the best. David Crookes meets the fans who've kept the games' flames lit
Grace of Monaco film panned: even the screenwriter pours scorn on biopic starring Nicole Kidman

Even the screenwriter pours scorn on Grace of Monaco biopic

The critics had a field day after last year's premiere, but the savaging goes on
Menstrual Hygiene Day: The strange ideas people used to believe about periods

Menstrual Hygiene Day: The strange ideas people once had about periods

If one was missed, vomiting blood was seen as a viable alternative
The best work perks: From free travel cards to making dreams come true (really)

The quirks of work perks

From free travel cards to making dreams come true (really)
Is bridge the latest twee pastime to get hip?

Is bridge becoming hip?

The number of young players has trebled in the past year. Gillian Orr discovers if this old game has new tricks
Long author-lists on research papers are threatening the academic work system

The rise of 'hyperauthorship'

Now that academic papers are written by thousands (yes, thousands) of contributors, it's getting hard to tell workers from shirkers
The rise of Lego Clubs: How toys are helping children struggling with social interaction to build better relationships

The rise of Lego Clubs

How toys are helping children struggling with social interaction to build better relationships
5 best running glasses

On your marks: 5 best running glasses

Whether you’re pounding pavements, parks or hill passes, keep your eyes protected in all weathers
Joe Root: 'Ben Stokes gives everything – he’s rubbing off on us all'

'Ben Stokes gives everything – he’s rubbing off on us all'

Joe Root says the England dressing room is a happy place again – and Stokes is the catalyst
Raif Badawi: Wife pleads for fresh EU help as Saudi blogger's health worsens

Please save my husband

As the health of blogger Raif Badawi worsens in prison, his wife urges EU governments to put pressure on the Saudi Arabian royal family to allow her husband to join his family in Canada