Receivers in but Clarke rescue hopes linger on
The receivers are, however, optimistic that they can keep the company going while they agree a restructuring. That could involve a cash injection from shareholders and creditors, or finding a new investor who would take over the management of the group.
That would carry echoes of the origins of the company two years ago, when Henry Clarke and his son Robert took control of Yelverton Investments, effectively a shell company, with the aim of revitalising the ice-cream market, These ambitions took off last year when it acquired the Lyons Maid ice-cream business from Allied Lyons.
Mr Clarke, who made his name with the Klondike bar, America's biggest-selling novelty ice cream, aimed to cover all parts of the market from children's lollies to luxury ice-cream. But commissioning of a new state-of-the-art production facility was delayed, while a massive advertising campaign had already begun, which left it unable to meet demand. By the time the plant was commissioned, the best of the summer was over and the group was faced with severe cash-flow problems.
Ipe Jacob, one of the the joint receivers from Robson Rhodes, said yesterday that the group's debts were pounds 20m to pounds 25m. He added that there had been approaches from 'all sorts of people, on all sorts of bases' since the company's difficulties had emerged.
He has made 100 people at the Greenford manufacturing site redundant, including Mr Clarke - although he remains a director. Mr Jacob does not expect more job losses among the 460 remaining staff.
Clarke's shares were suspended at 8p at the beginning of the month while it tried to agree a restructuring with its bankers, National Westminster. But these proved too complicated and the group was finally forced to ask it to appoint a receiver to avoid the danger of trading while insolvent.
Mr Clarke and his family are the largest shareholders, with 25 per cent between them. Next largest is Hillsdown Holdings, with 13.83 per cent and all the preference shares.
Hillsdown said it would not be interested in buying the company, and the pounds 7.6m book value of the holding will be charged as an extraordinary item in its 1992 accounts.
Allied Lyons is also owed between pounds 3.5m and pounds 4m deferred consideration.
Sales of the tablet are set to fall again, say analysts
Follow the latest updates from the Monday night Premier League fixture
Met Police confirm there was a 'minor disturbance' and no-one was arrested
George Lucas criticises the major Hollywood film studios
Does Chris Grayling realise what a vague concept he is dealing with?
Trend which requires crisps, a fork and a strong stomach is sweeping Mexico's streets
Concerns raised phenomenon is threatening resort's image as a family destination
I Am Bread could actually be a challenging and nuanced title
Peter Biaksangzuala died from his injuries in hospital on Sunday
- 1 Indian footballer Peter Biaksangzuala dies after injuring spine doing somersault celebration
- 2 Jack the Ripper: Scientist who claims to have identified notorious killer has 'made serious DNA error'
- 3 Drink alcohol and eat meat to improve male fertility - but cut down on coffee, studies suggest
- 4 Kentucky gang rape: 15-year-old boy left in critical condition after sexual attack by group at party
- 5 Lynda Bellingham dead: Loose Women presenter dies after battle with colon cancer
Sophia Loren: How I rejected Cary Grant and 'pulverised' Marlon Brando with my eyes
Banksy arrest hoax: Internet duped by fake report claiming that the street artist's identity has been revealed
'Russian submarine spotted' by Swedish military off coast of Stockholm
Kentucky gang rape: 15-year-old boy left in critical condition after sexual attack by group at party
Oscar Pistorius sentence: Athlete's wealth and notoriety provoke an overdue debate on South African prisons
Cameron is warned 'no possibility' of UK reducing immigration and that bid to bring in quota on migrant workers would be illegal
Sorry Judy Finnigan – Ched Evans is no less sickening than an alleyway rapist
Residents should throw a street party and mix with immigrant neighbours, councils told
Workers 'could be forced to pay £5 a week' to get benefits
Russell Brand threatened with arrest after filming outside Fox News headquarters
Amal Alamuddin calls for the return of the Elgin Marbles from Britain: 'Injustice has persisted for too long'
iJobs Money & Business
£18 - 23k + Benefits: Guru Careers: We are seeking a Customer Service Executiv...
£60 - 65k + Benefits: Guru Careers: We are seeking a ASP.NET Web Developer / ....
£60,000 - £80,000: Saxton Leigh: Our client is an leading Asset Manager based...
£27000 - £32000 Per Annum: Clearwater People Solutions Ltd: Our large charity ...