Devon-based Eversfield Organic has entered administration, leaving significant debts unpaid.
- The company’s financial challenges resulted in the closure of shops and distribution outlets.
- A loss of key business accounts contributed to the financial downturn.
- Attempts to rescue the business were deemed unfeasible by administrators.
- Founder Mark Bury described the situation as ‘a tragedy’ amidst the firm’s collapse.
Debts amounting to nearly £7 million remain unresolved following the recent collapse of the high-end Devon food company, Eversfield Organic. The firm, headquartered in Okehampton, was renowned for supplying produce to London’s prestigious Selfridges but faced severe financial difficulties that led to the closure of its shops before entering administration. The administrators from Mazars recently confirmed that a rescue was not a viable option, exposing the extent of the unsustainable financial predicament faced by the company.
Reports reveal that creditors, including HSBC, are unlikely to recover payouts from the defunct company. HSBC alone held claims over £2 million under a debenture against company assets. Additionally, 22 former employees are positioned as preferential creditors, awaiting redundancy payments processed by the Government’s Redundancy Payments Service. A further complication involves a pension firm seeking £2,452 in outstanding contributions. HM Revenue and Customs also filed claims for £510,401 in unpaid taxes, but administrators anticipate no returns to these secondary preferential creditors.
The company’s financial distress was exacerbated by the loss of significant contracts with Ocado and Abel and Cole in 2022, resulting in a deficit of £2.3 million in sales. Administrators outlined that Eversfield Organic incurred losses of £536,000 in 2022, which ballooned to £1.6 million by 2023, marking a critical downturn in its financial health by mid-2023.
An attempted sale to Weston-super-Mare-based Kimbardel ended contentiously, leading to legal disputes over payments and property use. Although heads of terms were drawn up for Kimbardel’s acquisition, involving the transfer of 94 staff, the transaction’s completion is disputed, adding to the complexities surrounding Eversfield Organic’s closure.
Eversfield Organic’s founder, Mark Bury, expressed his distress at the collapse, highlighting the magnitude of the setback. Bury has since embarked on new ventures, including Soil and Sea Hospitality and Soil and Sea Online, aiming to revitalise certain business segments lost to Eversfield’s financial failings.
Eversfield Organic’s downfall underscores significant challenges in maintaining profitability amidst market shifts and operational disruptions.
