THE British Seafood crisis plunged the fishing town of Grimsby into further gloom last night with the announcement that Five Star Fish, the group's "star" performer was also in administration.
The news was released by the financial group Deloitte which took over the running of British Seafood after it collapsed financially last week. Until late yesterday Five Star had managed to escape administration and was trading normally, but then came the news that it too would now be run by administrators until a buyer is found.
The company has 332 employees on its payroll and as such is one of Grimsby's large fish processing employers. It was founded over 20 years ago by Grimsby fish entrepreneur John Fenty, who is now chairman of Grimsby Town Football Club. He sold it to the Real Good Food Company about six years ago for a reported £22-million. Real Good Food then sold it onto British Seafood in 2007 for £35 million. Last year it unveiled a £7-million expansion and took on an extra 100 workers.
Matt Smith, one of Deloitte's three administrators looking after the interests of the group, told Fish Update: "We believe Five Star is a sound, profitable business, which unfortunately has had to enter administration due in part to concerns over the financial position of the wider British Seafood Group. Five star is largely a stand alone operation with its own management team and is a market leading supplier to the food services and retail sectors.
He added: “Our initial focus is on working with employees, customers and suppliers to stabilise the trading activities of the company. We are hopeful that a successful sale of the business as a going concern can be achieved in a relatively short timeframe.” Deloitte said there had been no redundancies at the Five Star plant. Yesterday it was disclosed that a £150 million hole had been found in the finances of British Seafood which means creditors are likely to receive very little.
The collapse is also having a major impact on the many Grimsby fish businesses, ranging from seafood suppliers to cold store and transport companies who are owed large sums of money British Seafood and there are worries it could drag some of them down.
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