ADMINISTRATORS for Dawnfresh Seafoods have revealed their interim fees and expenses for their recovery work on the failed Scottish business.
Two hundred jobs were lost when Dawnfresh Seafoods went into administration in March, which was followed by the immediate closure of the company’s loss-making fish processing plant in Uddingston.
Tom MacLennan, Callum Carmichael and Michelle Elliot of FRP Advisory were appointed administrators of holding company Dawnfresh Holdings and subsidiaries Dawnfresh Seafoods and RR Spink & Sons (Arbroath) after the business was unable to mitigate rising costs, overcapacity at the Uddingston site and unsustainable cash flow problems - despite investment to upgrade the plant and systems, improve efficiency and reduce costs. It followed 17 consecutive years of losses at the parent group.
A filing newly lodged at Companies House shows the administrators are authorised to draw an interim fee of £739,078.25 plus value-added tax, representing the time costs incurred by them and their staff for the period between February 28 and April 8. The administrators’ remuneration is drawn from the company’s assets.
Administrators have been focused on realising the assets of Dawnfresh Seafoods, having noted in a report in April that there was no funds available to allow it to continue to trade. The level of unsecured liabilities meant they did not anticipate finding a buyer.
As announced when the company went into administration, RR Spink & Sons was sold by the administrators to Buckie-based Associated Seafoods in a deal that saw all 249 staff transfer to the new owner. A further subsidiary business Dawnfresh Farming has continued to trade solvently while being marketed for sale.
The ultimate beneficial owner and shareholder of the Dawnfresh business is Alastair Salvesen, who gained control in a 1983 management buy-out when it was part of the Christian Salvesen empire.
Mr Carmichael said at the time the administrators were appointed: “Dawnfresh is a high-profile and highly regarded seafood business with a long tradition of supplying innovative products to a blue-chip customer base.
“Unfortunately, the business has been unable to overcome very serious financial problems at the Uddingston facility, but we are pleased to have secured a prompt sale of the Arbroath facility in a deal that will also preserve substantial employment in the town.
"Our focus is now on finding a buyer for the farming business whilst also realising as much value as possible from the other assets for the benefit of creditors.”
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