Eversfield Organic, a Devon-based high-end food supplier, has been declared insolvent following severe financial setbacks.
- The company’s collapse leaves nearly £7 million in unpaid debts, with major creditors like HSBC unlikely to receive payment.
- Administrators Mazars find rescuing Eversfield Organic unfeasible, leading to the closure of several retail locations.
- The company’s financial distress worsened after losing two key business accounts in 2022, drastically affecting turnover.
- With significant staff layoffs and legal disputes, the future of Eversfield’s operations remains uncertain.
Eversfield Organic, a once-prominent Devon-based food company, has been subjected to financial collapse, amassing nearly £7 million in unpaid debts. The enterprise, known for supplying produce to London’s prestigious Selfridges, faced insurmountable economic challenges that led to its administration earlier this year. Despite selling fresh produce and meat online and through various retail outlets, including three shops and two restaurants, the company could not overcome severe monetary issues.
The administrators, Mazars, declared that salvaging Eversfield Organic as a viable entity was unattainable. Documents submitted to Companies House reveal the expansive debts, with key creditors such as HSBC, which holds claims exceeding £2 million, receiving a warning about not expecting any financial recovery. The closure of shops and redundancy of 22 employees have only compounded the company’s difficulties.
The Debts of Eversfield Organic also extend to the Government’s Redundancy Payments Service (RPS) and HM Revenue and Customs, which have undertaken respective claims of £3,833 and £510,401. However, potential disbursements to satisfy these obligations remain speculative. In addition, a pension firm awaits £2,452 in unpaid contributions, further illustrating the dire fiscal position that the company finds itself in.
This predicament commenced when Eversfield lost significant accounts with online supermarket Ocado and food distribution service Abel and Cole in 2022. These business relationships accounted for £2.3 million in sales within that year, and losing them had tangible adverse effects on Eversfield’s revenue. The financial losses deepened, leading to cumulative losses of £1.6 million by 2023.
In an effort to salvage the situation, Eversfield engaged in sale discussions with Kimbardel; however, subsequent legal disputes regarding payments and property usage have arisen. Former Eversfield locations, like those in Totnes and Marlborough, have since been closed, leaving the fate of remaining assets and operations uncertain.
The downfall of Eversfield Organic serves as a cautionary tale, highlighted by company founder Mark Bury’s statement, viewing the closure as ‘a tragedy.’ Although Bury has moved into new endeavors, including ventures like Soil and Sea Hospitality, the fate of Eversfield’s legacy remains unresolved.
Eversfield Organic’s insolvency and subsequent closure reflect the catastrophic impact of financial mismanagement and market changes.
