Administrators agree sale of DBC's MoD contract to Vestey Foods Group
Administrators of DBC Foodservice have secured a buyer for its Ministry of Defence (MoD) contract which has safeguarded more than 200 jobs at the Dundonald and Petersfield plants.
Vestey Foods Group has agreed to buy a contract DBC secured in 2006 to provide foodstuffs to the MoD.
Administrators Baker Tilly said the deal secures the immediate future of operations in Petersfield and Dundonald, from which the MoD contract was serviced by DBC, along with the associated jobs.
Joint administrator Russell Cash said: “I am absolutely delighted to have played a part in achieving such a fantastic outcome in the most challenging of circumstances.
“This is a good business with good people and I wish everyone concerned the very best going forward.”
Vestey Foods Group is a family-owned group of companies specialising in the import, storage and distribution of foodstuffs to more than 70 countries worldwide.
Adam Cox, Vestey Foods deputy chief executive, said: “Our priority has been to ensure the continuation of the MoD food supply chain and the undisrupted delivery of high quality food that the armed forces rely on.
“The acquisition of the DBC Foodservice MoD contract will not only ensure that this can be achieved, but it will also safeguard over a fifth of the total number of DBC’s UK staff.”
DBC Foodservice, which employs a total of 982 people across 12 locations, went into administration earlier this week.
The company had been put up for sale by its owners a week earlier after posting a near £5 million annual loss despite a 10 per cent rise in sales.
The administrators are continuing in their efforts to sell off the remainder of the DBC business.