You are in > manchester.com  > News > Crunch time as Golden Wonder goes bust

Business

Crunch time as Golden Wonder goes bust

09/01/2006

Crisp manufacturer Golden Wonder has been placed into administration as a result of "serious trading difficulties".

Kroll, which is acting as administrator, announced the move after revealing that the crisp firm had made "significant" losses in 2005, following a £10.8 million loss in 2004.

Under the terms of the insolvency, Golden Wonder's loss-making own-brand operations, based in Corby, Northamptonshire, will close. The plant currently employs about 350 people.

Buyers will be sought for its other brands of crisps, which include Nik Naks, Ringos and Wheat Crunchies.

Kroll indicated that the strength and history of the Golden Wonder brand, founded in 1949, meant that it was "hopeful" a buyer could be found.

"Despite recent efforts to restructure operations and find a buyer for the business, these have not been successful in dealing with the problems faced by the company and as a result it has been necessary to place Golden Wonder into administration," Kroll partner Adrian Wolstenholme said in a statement.

"We hope that the administration will provide further time to review the options available, however given the level of losses being incurred, which is unfortunately why it has already been necessary to make the decision to close the Corby own-label operations, we expect that some further action will need to be taken to restructure the business.

"At the same time, with such well-known and well-liked brands, we very much hope that a sale of all or parts of the business can be secured."

Should no rescue package materialise, up to 850 jobs could be lost as a result of the bankruptcy.

Despite a number of rebranding attempts, Golden Wonder has struggled to compete with PepsiCo-owned Walkers in recent years, with the market leader now accounting for 50 per cent of the UK's £2 billion crisps market.

© Adfero Ltd