Avalon administrators blame fruit and veg for cash flow issues

According to a report from Crain’s Manchester Business, BDO Stoy Hayward has published a statement about the company’s business affairs.

Crain’s reported that the statement said that Avalon, which went into administration in October, will end up owing almost £3m to creditors who have lodged claims of £6m.

It has also revealed that the company attempted to enter the meat market, but suffered when a supermarket returned goods claiming they were not fit for purpose.

An investigation discovered that regulatory tests were not carried out on the some of the raw materials and a court case is pending.

The administrator was this morning unavailable to comment further.

Avalon Packaging has been established for more than 25 years, has 11 thermoforming lines and its own fleet of distribution vehicles. It had a turnover of more than £16m in 2007.

In April 2007 the company was fined £50,000 after pleading guilty to 15 offences under the Producer Responsibility Obligations (Packaging Waste) Regulations 1997.

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