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Rt. Hon. Sir Alan Beith MPLiberal Democrat Member of Parliament for Berwick Upon TweedWorking for you and the Berwick upon Tweed Constituency all year roundin Northumberland and in Westminster |
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Beith helps Northumberland Foods stay in the game
August 6, 2009 2:00 PM
Alan Beith MP has worked hard behind the scenes to help protect nearly 200 jobs at Northumberland Foods in Amble.
A specialist food manufacturer saved from administration has begun the next phase of its development after securing a substantial financial support package.
Northumberland Foods, previously Cheviot Foods, has secured a £960,000 working capital facility from The Royal Bank of Scotland (RBS) and Lombard, the asset finance arm of the RBS Group. The funding package will enable Northumberland Foods Limited to press ahead with plans to grow the business, which specializes in frozen potato products.
The move will protect the jobs of the vast majority of the 190 employees at the company's headquarters in Amble, Northumberland.
Northumberland Foods Managing Director Peter Kirkham said:
"This deal led by RBS with support from One North East and Northumberland County Council will safeguard the short to medium term future of Northumberland Foods whilst it re-establishes itself as a prime supplier of frozen vegetable products to the major retail and food service markets.
"In the current climate the loan has not been easy to obtain and on behalf of our suppliers, customers and most importantly our staff I would not only like to thank the three organisations involved but also Sir Alan Beith and Fiona Hall for their invaluable support during this process."
MP for Berwick Sir Alan Beith said:
"Northumberland Foods is a major employer in Amble and it was vital to ensure that the new management had access to capital to secure the future of the business and the jobs. I warmly welcome the support of RBS, One North East and Northumberland County Council in achieving this essential investment."
In January, a consortium comprising part of the former management team at Cheviot Foods, together with private investor backing, took over the firm which is the Northumberland port's largest employer.
Advisers from Tait Walker Corporate Finance helped arrange the new loan from RBS, which allows Northumberland Foods Limited to press ahead with plans to grow the business, which specialises in frozen potato products.
The RBS funding was provided through David Moon from the RBS Commercial banking team and Tim Kenyon from the Lombard team in Newcastle. David Moon said:
"As Peter and the team at Northumberland Foods look to grow the business they have taken the opportunity to review their banking partners.
"We are delighted to welcome them to RBS and have taken the opportunity to put in place a finance structure that moulds to the business needs, as opposed to using existing product lines to provide the flexibility the company needs to meet its immediate and longer term business objectives."
When it became clear that bidders were unlikely to be able to meet the administrator's deadline for a sale of 23rd January, Northumberland County Council provided financial backing to the tune of £45,000 to allow the factory to remain in production for a further week, allowing the 11th hour deal to be completed.
One North East provided a financial package to help the new management team buy company assets during the takeover in January and also help support the local supply chain into the company.
One North East Board member, Ian Brown, said:
"This is a clear demonstration that RBS has faith in Northumberland Foods and its management's plans and that banks are willing to back regional businesses with significant loan packages.
"Northumberland Foods has made significant progress in securing its future in the region, which until recently looked uncertain. I would like to congratulate everyone associated with this project for their hard work and wish the company the best of luck going forward."
Lib Dem Euro MP Fiona Hall, who helped Northumberland Foods to get revised electricity payment arrangements by writing a letter to the head of EON, said:
"I am very pleased that Northumberland Foods has received the help and backing of such a wide range of people and institutions. This co-operation has enabled Northumberland Foods to continue to fight through some very difficult times. I am pleased that my discussions with EON contributed to easing the immediate financial pressures on the company."
The Rural Development Programme for England 2007-2013 is jointly funded by Defra and the European Union, with the aim of delivering targeted support to rural businesses and communities. It is managed in North East England by One North East, Natural England and the Forestry Commission.
The RDPE investment being managed by One North East combines larger projects to help many businesses in different sectors of the rural economy - including bioenergy and land-based skills, and projects adding value to agricultural and forestry products - with smaller investments to help individual businesses to start-up, grow or diversify, and support to develop more sustainable rural communities.
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