Up to 300 creditors owed £15 million following collapse of Ely-based Wellgrain Ltd - NFU sets up hotline to help farmers
PUBLISHED: 09:54 09 March 2017 | UPDATED: 15:28 09 March 2017
Some farmers say they stand to lose up to £100,000 following the news that Ely-based Wellgrain Ltd, a grain trader, has gone into administration owing up to £15 million to almost 300 creditors.
Rumours that Wellgrain were in trouble have been circulating on social media for some weeks but it was Farmers Weekly that broke news of the administration.
Farmers Weekly are reporting that the National Farmers Union (NFU) is contact with the administrator Grant Thornton and has promised to keep its members informed about how matters will proceed from here.
NFU acting senior legal adviser Lucy Ralph told the farmers’ magazine said: “The news that WellGrain Limited has entered administration is extremely worrying, particularly for those NFU members who are owed money by the company.
“We are working to provide guidance to those NFU members who are affected by the administration. They are encouraged to contact NFU Callfirst on 0370 845 8458 as soon as possible.”
Matthew Richards and Daniel Smith of Grant Thornton were appointed administrators to the company at the request of its directors.
Wellgrain had its main office at Alexander House, Ely, and only three of the 31 staff are being temporarily retained by the administrators.
Accounts from 2015 show it had a turnover of £86 million with profit before tax of £215,000 and net assets of nearly £3 million.
(More details to follow)