Makers of one of Britain’s most distinctive looking biscuits, Rivington, have gone into administration this week after being seriously impacted by the decline of the pound against Euro. The Wigan-based firm is best known for it’s Pink Panther brand biscuits which have been a children’s favourite in the UK since the since the 1970’s, though only produced by Rivington since 1996. Although the company had already been struggling, its administrator FRP Advisory announced that the company had suffered a ‘sustained deterioration’ since the landmark decision on June 23, 2016.
Job Losses of almost 100 staff
While the company administration gives the firm time to turn its fortunes around, the decision has already caused the loss of some 99 of its 123 staff. Russel Cash, one of the partners at FRP Advisory commented: ‘”As administrators, given the financial situation, we have had to take the difficult decision of making a large number of redundancies and our immediate priority is to assist those staff who have lost their job to make timely claims…. The joint administrators will now ensure discussions continue with key customers and suppliers whilst encouraging any parties with any interest in acquiring the business or parts of it to come forward.
Another Instance of the Brexit Price Hike
Rivington’s situation grew critical after the pound fell sharply post-Brexit, resulting in higher ingredients costs from Europe. While many other brands have been hit by a similar price hike, global brands such as Unilever have the brand dominance necessary to pass this on. Tescos, however, have removed a number of popular products such as Marmite, Bovril and PG Tips from its online store following Unilever’s 10% price rise suggesting even the most authoritative brands are facing a tight squeeze.
Dutch company Van Delft are believed to have invested about £7m in Rivington’s production capabilities since buying the company in 2009. Former Company Secretary stated: ‘”It is correct that company has gone into administration, which is why I am no longer company secretary as the company’s affairs are being dealt with by the administrators,”