More than 500 jobs go at Corby Orchard House Foods
- Published
More than 500 workers have lost their jobs after a fruit and juice firm went into administration.
The administrator for Orchard House Foods, external, in Corby, Northamptonshire, said managers took the decision because of "challenging trading conditions".
Lee Barron, TUC Midlands Regional Secretary, said workers were sacked "with no prior negotiation or warning".
More than 480 Gateshead workers lost their jobs when the firm said in August that it would relocate work to Corby.
Sarah O'Toole, partner at Grant Thornton UK LLP, external and joint administrator, said: "Economic conditions have proved incredibly challenging for many businesses operating in this sector.
"Despite management's best efforts to find a long-term solution for the business, challenging trading conditions have meant the difficult decision has been taken to appoint administrators."
The decision came two years after UK private equity fund Elaghmore purchased Orchard House for about £25m, external.
The firm, which had its headquarters in Corby, supplied brands such as Marks & Spencer, Morrisons, Pret A Manger, Sainsbury's and Tesco.
Workers from the Tyne and Wear plant are still to receive redundancy pay-outs.
The administrators said it would be making contact with the former Gateshead employees "to assist them in making the relevant claims with the Insolvency Service, external".
The Corby workers received emails telling them they would have to return to the site at a later date to collect any personal property and to make a claim for money owed.
Mr Barron said: "We are asking for an inquiry to find out what went wrong and to learn lessons.
"But, sadly, that won't help the workers, so we are also calling on the government to intervene to provide the necessary support and help to the affected workers."
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