FDBusiness.com

English company Westler Foods, best known for its Westlers branded hotdogs, has appointed KPMG Restructuring as administrator. The profitable business employs almost 200 people at its Malton site in Yorkshire in the production of a wide range of canned and pouched food products for a series of well known brand names in addition to its own branded food service offerings, including Westlers, Multi Menu, Tyne, BigMex, Chesswood, Wayfayrer, Military Rations and Compleat, found at supermarkets, funfairs, cinemas and other leisure venues.

The administration has been triggered by the company’s inability to fund its defined benefit pension scheme. An evaluation in early 2009 found a funding gap of more than £15m which the company has since sought to address. However, despite attempts involving internal and external investment, this has not proved possible.

“This is an uncommon and unfortunate situation of a well run and profitable business being compelled to enter insolvency specifically because of the scale of its pension deficit,” explains Howard Smith of KPMG Restructuring. “The company has a number of extremely interesting contracts so we are trading the business as a going concern while seeking a buyer.”