A Fife manufacturer which supplies the food and drink industry with specialist equipment has appointed a liquidator.
Tayport-based Foodmek designs, manufactures and installs equipment at some of the largest food-processing plants in the UK.
It has exported to more than 20 countries since its formation in 1971.
During the pandemic it diversified into making vessels for Covid test kits.
The directors of the company are appointing insolvency specialist Shona Campbell of Henderson Loggie as liquidator.
Closure of the 52-year-old firm affects 32 jobs.
Reasons for Foodmek liquidation
Managing director Scot Kelly said the Shanwell Road business had been affected by projects being deferred during the economic downturn.
He said: “We manufacture capital equipment and have been very busy quoting for new contracts.
“Unfortunately decisions have been deferred or projects cancelled due to economic uncertainty, caused by the war in the Ukraine and spiralling energy costs.
“When cash is tight, companies pull back on capital expenditure.”
Mr Kelly said the business has “explored every option” to continue trading.
He said it had received excellent support from its bank and Scottish Enterprise but feels it can no longer continue.
He adds: “We do not have the cash to trade through this downturn. This is a sad day for us.
“Foodmek has been a good employer in the Tayport area for generations, bringing many apprentices through training and we will always be grateful to our staff.”
Statement from liquidator
In 2019 the company was awarded £500,000 loan scheme from Scottish Enterprise which allowed it to invest in new equipment, innovation and extra highly-trained engineers.
Two years ago the company said it had its best ever year as it traded through the pandemic. At that point it had an order book of £1.5 million.
However, it has seen a significant drop in its order book this year.
Ms Campbell, insolvency partner at Henderson Loggie, said: “The directors have been trying very hard to overcome the challenges to continue the business, but regrettably it has not been possible.
“My aim now is to ensure the smooth closure of the business as quickly and efficiently as possible.
“Any parties interested in the business and assets should contact me.
“Employees have been informed and will receive all the necessary guidance and support to ensure they receive their full employment entitlements.”
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