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150m Black Hole At British Seafood

Economics +1 more

UK - The British Seafood Group was last week put into administration in a move that has shocked the industry. Now, administrators from Deloitte express concern over missing money.

British Seafood, an international food group specialising in the global procurement, processing and distribution of fresh and frozen fish went into administration after trade credit was withdrawn on 19 February 2010.

Deloitte, the administrators are now expressing concern that there is a £150-million hole in the company accounts which they are so far unable to trace. Few creditors now expect to get much of their money back, reports The Financial Times.

The company relied on trade credit to pay fish suppliers in the Far East. However it did not get paid by the majority of its own customers until some time later which exacerbated the cash flow problems.

Until now, Deloitte had been confident that it would find a a buyer for the business.

Good news is that Five Star Fish of Grimsby, is trading normally and is not in administration. It has a big share of the food service market including fried fish shops, but it is not yet clear if a private buyer will come in or if it will be sold as part of British Seafood. According to the last known figures British Seafood had sales of around £324 million and a profits before tax, depreciation and interest of some £26 million.