Jobs worry as hot dog firm calls in receivers

Up to 200 jobs could be jeopardy at a Yorkshire hot dog firm which has called in receivers after being plunged into a cash crisis involving its underfunded pension scheme.

Malton-based food production company Westler Foods Ltd, best known for its Westlers branded hot dogs, appointed Howard Smith and Mark Firmin of KPMG's Restructuring practice as joint administrators on Friday.

The profitable business employs almost 200 people at its Yorkshire site in the production of a wide range of canned and pouched food products for a series of well known brand names.

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It also markets its own branded food service offerings, including Westlers, Multi Menu, Tyne, BigMex, Chesswood, Wayfayrer, Military Rations and Compleat, found at supermarkets, funfairs, cinemas and other leisure venues.

Bosses say the administration has been triggered by the company's inability to fund its defined benefit pension scheme.

An evaluation in early 2009 found a funding gap of more than 15m which the company has since sought to address. Despite attempts involving internal and external investment, however, this has not proved possible.

Howard Smith, joint administrator and KPMG Restructuring Associate Partner, said: "This is an uncommon and unfortunate situation of a well run and profitable business being compelled to enter insolvency specifically because of the scale of its pension deficit.

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"The company has a number of extremely interesting contracts so we are trading the business as a going concern while seeking a buyer.

"The administrators have made redundant nine staff, who are

not directly involved in production." Interested parties should contact Caroline Hooper on 0113 254 2924.