Fife firm established more than 50 years ago goes bust with loss of 32 jobs
The directors of Tayport-based Foodmek have applied to the court to appoint insolvency specialist Shona Campbell of Henderson Loggie as liquidator. Foodmek was established in 1971 to supply processing equipment for the food and drink industry and has been supplying some of the biggest names in the UK and overseas for the past 52 years.
The business is said to have continued to operate profitably during the pandemic thanks to fulfilling contracts for the pharmaceuticals industry. However, since then, it has experienced a “significant slowdown” in its order pipeline.
Managing director Scot Kelly said: “We manufacture capital equipment and have been very busy quoting for new contracts, but unfortunately decisions have been deferred or projects cancelled due to economic uncertainty, caused by the war in the Ukraine and spiraling energy costs. When cash is tight, companies pull back on capital expenditure. We have explored every option to continue trading but despite excellent support from our bank and from Scottish Enterprise we do not have the cash to trade through this downturn.”
Campbell added: “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. Employees have been informed and will receive all the necessary guidance and support to ensure they receive their full employment entitlements.”