James Clark and Howard Smith from Interpath Advisory have been appointed joint administrators to VBites Foods Limited.
Founded in 1993, VBites is a manufacturer and wholesaler of plant-based meat and cheese. The company operates from two manufacturing sites in Peterlee, County Durham, and Corby, Northamptonshire.
The company had recently seen increased pressure on cashflow due to the impact of rising raw material costs and energy prices, as well as a softening of consumer demand for alternative protein products in the wake of the cost-of-living crisis.
The directors sought to explore their options, including making attempts to secure additional funding. Unfortunately, however, a funding agreement was unable to be reached, leaving the directors with no option but to seek the appointment of administrators.
The joint administrators will continue to trade the site in Peterlee while they seek a buyer for the business and its assets. Consequently, 29 members of staff based at the Peterlee site have been retained by the joint administrators to assist them with trading.
The joint administrators have also retained 25 employees at the site in Corby to assist with the fulfilment of outstanding orders. However, 24 employees across the business have been made redundant.
James Clark, joint administrator and Managing Director at Interpath Advisory, said: “VBites is one of the UK’s leading manufacturers of vegan food products but unfortunately, and in common with many other companies across the food manufacturing sector, had seen trading impacted by rising commodity and energy prices.
“Our immediate priority is to provide support and assistance to those employees impacted by redundancy, as well as seeking a buyer for the business and its assets. We would encourage any interested parties to make contact with us at the earliest opportunity.”