The business advisory firm Quantuma has ensured a sustainable future for D&A Seafood Solutions Ltd by facilitating a pre-pack sale to Ramus, a prominent supplier specializing in premium quality fresh fish and seafood.
D&A Seafood faced significant challenges, leading to its entry into a Company Voluntary Arrangement (CVA) in April of this year. Unfortunately, the CVA proved unviable and ultimately failed, resulting in the business entering administration.
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On 31 October, Quantuma managing directors Sean Bucknall and Elias Paourou were appointed as joint administrators to oversee the process.
Through this transaction, Ramus has acquired the D&A Seafood Solutions site located in Grimsby, ensuring that all employees were transitioned to the new owner under TUPE – Transfer of Undertakings (Protection of Employment) – regulations. This sale has successfully protected the jobs of all 32 staff members associated with D&A.
Founded in 2015, D&A Seafood Solutions reported a turnover of approximately £4.5 million in 2023. The firm supplies fish and seafood to various sectors, including retailers, restaurants, hotels, and caterers from its BRC accredited site.
Insolvencies
Research conducted by law firm Shakespeare Martineau revealed that the manufacturing sector accounted for 11% of UK administrations in 2023. However, insolvencies within the food and drink industry have seen a decline during 2024 compared to the previous year.
Analysis by Thomas Swiers, director and national head of food and drink at Interpath Advisory, indicated that there were, on average, 34 food and beverage insolvencies between January and June 2024. This marks a decrease from a monthly average of 40 throughout all of 2023.
Despite this positive trend, the industry has not yet returned to pre-pandemic insolvency levels. Furthermore, a relatively low insolvency rate reported in July followed a period of heightened activity in early summer.
Meanwhile, Nick Stockley, a partner at Sussex-based solicitors firm Mayo Wynne Baxter, shed light on the administration process and outlined the options available for food and drink firms that are encountering financial challenges.