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Rivington Biscuits goes into administration, 100 jobs at risk

Published 16 December 2016

UK based Rivington Biscuits has gone into administration after facing financial trouble which it blames on the fall in the pound value post Brexit.

Wigan-based Pink Panther wafers maker would remove nearly hundred employees following the development, reported The Independent.

After the Brexit referendum in June, Rivington Biscuits has been hit by the increased import cost of ingredients needed to make its biscuits, resulting in significant losses and forcing it to take the administrative route.

London based FRP Advisory has taken over as the administrators of Rivington Biscuits.

FRP said in a statement: "Rivington Biscuits experienced particularly challenging trading conditions over the past year, resulting in significant pressure on profit margins and cash flow.

"The problems were compounded by the sharp decline in the value of the pound against the euro. The company was left with no viable alternative other than to seek the protection of administration while a long-term solution can be explored."

The wafer maker will retain 24 employees until it gets a new buyer, reported the BBC.

Its administrators said that Rivington Biscuits will continue production with reduced staff to fulfill its current orders into the New Year.

FRP Advisory Russell Cash has been quoted by the publication to have said: "A sustained deterioration in trading conditions and significant additional pricing costs since the summer following the sharp fall in the value of the pound, left the business facing unsustainable cash-flow pressure.”

Following the Brexit vote in June, the pound value came down significantly to a three-year low against the euro in October.