Jobs have been saved at Leeds-based ingredients supplier BFP Wholesale after the company was bought out of administration.
The company has a turnover of £70 million and supplies to both food manufacturers and bakeries, however it is likely that unsecured creditors will face a multimillion pound shortfall after the firmâs collapse.
KPMGâs Will Wright and Rob Croxen were appointed as BFP Wholesaleâs joint administrators in May this year.
Incorporated in 1992, the company had a diverse base of clients totalling around 3,500 customers, operating from four sites in Leeds, Livingston, Highbridge and Sevenoaks (where its headquarters are based) and employs 165 staff.
The firm generated revenues of £73.1 million in 2014, which was down from £76.2 million the previous year and £77.3 million in 2012.
After attempts to sell the business proved unsuccessful and sales declined, the directors decided that they would have to cease trading, resulting in the appointment of administrators.
However, the administrators completed a partial sale of the company and its assets to a subsidiary of Kent Foods, which saved 59 jobs.
C&C 25 Ltd acquired all of the companyâs stock, as well as the firmâs operations in Livingston and Leeds.
The administrator s published new proposals last month and has confirmed that unsecured creditors of the company were owed over £8.5 million at the time of the appointment.
However, the directors provided a statement of affairs which stated that they are only likely to recover around £400,000.
The report also said that secured creditors Lesaffre and GE Capital were owed £6.5 million and £5 million respectively.
It is estimated that Lesaffre will recover around £1.4 million, which will leave a £5.1 million shortfall, while it is expected that GE Capital will be repaid in full.
In May, workers at BFP Wholesale admitted that they knew something was going wrong with the companyâs operations.