Administrators sell DBC’s MoD contract

Administrators of DBC Foodservice have secured a buyer for the company’s MoD contract, but have also made 287 of the 982 staff redundant.

The contract for the worldwide provision of food to the MoD, which DBC had held since 2006, has been acquired by Vestey Foods Group following negotiations with joint administrators from Baker Tilly Restructuring and Recovery LLP.

The deal secures over 200 jobs at the Petersfield and Dundonald depots, from where the MoD contract was serviced.

Baker Tilly Restructuring and Recovery Partner and joint administrator, Russell Cash said: “I am absolutely delighted to have played a part in achieving such a fantastic outcome in the most challenging of circumstances. This is a good business with good people and I wish everyone concerned the very best going forward.”

Commenting on the acquisition, Vestey Foods UK deputy CEO Adam Cox said: “Our priority has been to ensure the continuation of the MoD food supply chain and the undisrupted delivery of high quality food that the Armed Forces rely on.

“The acquisition of the DBC Foodservice MoD contract will not only ensure that this can be achieved, but it will also safeguard over a fifth of the total number of DBC’s UK staff.”

The majority of the redundancies were at Rotherham where 100 of the 170 staff have left and at Thatcham where 96 out of 101 jobs have gone. In addition 34 jobs have been lost at Chelmsford, 25 at Cardiff, 13 at Exeter, 12 at Darlaston, 5 at Warrington and 2 at head office in Welwyn Garden City.

The appointment of administrators came a week after its directors announced that they were looking for a buyer for the company “in the light of the very challenging trading environment with which the business has recently been confronted”.

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