Workers made redundant at Frank’s Ice Cream

Joint administrators Richard Lewis and Alistair Wardell of Grant Thornton UK have been working since March to find a buyer for the business, but a lack of funding has meant manufacturing hasn’t been able to recommence on site.

As such, 14 members of staff were made redundant late last month. The remaining employees who mainly worked in the ice cream parlour have been retained while that part of the business continues to trade.

Energy and materials costs

A statement from the joint administrators said Frank’s Ice Cream Ltd has been loss making for some time, having been severely impacted by the surge in energy costs over the past year and a significant increase in raw material costs.

“This, combined with an investment in the ice cream parlour put working capital under pressure and left the company unable to fulfil orders​,” the statement continued.

“Following their appointment, the joint administrators have been working to secure a buyer for the business and are continuing to liaise with a number of interested parties in acquiring the business. Further information will be made available in due course.”​

Food and drink redundancies

This month has seen a number of roles within the food and drink manufacturing industry threatened with redundancy.

Oscar Mayer has announced plans to downsize its Flint, North Wales plant, putting 330 members of staff at risk of redundancy.​​ Oscar Mayer blamed a failure to return to the levels of pre-pandemic sales since lockdowns were eased as a major contributor in its decision to downsize the site.

Meanwhile, Scotbeef has revealed plans to make more than half of its Wolverhampton-based members of staff redundant,​​ after losing a major contract with a high-street supermarket. It is understood that 54 roles at the meat processor’s Wolverhampton operation are at risk of redundancy, more than half of the 98 strong workforce currently at the site.