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DBC Foodservice enters administration 27 March 2012

DBC Foodservice Limited has entered administration with Baker Tilly appointed as the administrator.

The group which was founded in 1902 distributes and manufactures food and hygiene products to a range of companies, educational establishments and the Ministry of Defence.

DBC had been struggling of late and had put the company up for sale last week after its credit insurers pulled cover for those companies dealing with the wholesaler after its reported £4.95m loss for the year ending 25 March 2011.

Industry journals have been full of criticism for the business in recent weeks with allegations that the company had failed to honour some deliveries in full due to a lack of stock.

Nick Hood, head of external affairs for Company Watch, said this looks like the classic case of what happens when a heavily indebted business suffers major losses.

He added: “The company was deep into our warning zone with a score of only 12 out of 100 and has only briefly been out of our warning zone since March 2007.”

On 13 March DBC Foodservice confirmed it had reappointed Andrew Ramsden as its chief executive officer for what it called “such an important time”.

Ramsden was previously widely credited with the business’ growth and profitability during his previous tenure as chief executive officer between 2007 and 2010.

Speaking on his reappointment, Ramsden promised to lead the company into ‘a highly profitable future.’

DBC (previously called Danish Bacon Company) was bought out in 2009 by Andrew Pritchard and Tarsem Dhaliwal.

Russell Cash, Ben Woolrych and Mark Wilson from Baker Tilly Restructuring and Recovery LLP were appointed as joint administrators of DBC Foodservice Limited on 27 March 2012.

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