Northern Foods to close Welsh factory

by sharecast - 22/04/2010

"LONDON (SHARECAST) - Food maker Northern Foods is to close down a factory in Wales after failing to agree terms for the sale of food from the facility.
"

LONDON (SHARECAST) - Food maker Northern Foods is to close down a factory in Wales after failing to agree terms for the sale of food from the facility.

According to Northern, it was in discussions with its ‘anchor customer’ (the Supermarket Sainsbury’s, according to Reuters) but ‘mutually agreeable terms could not be reached and as a result, we have reluctantly decided to terminate the existing supply business.’

Northern took over the factory in 2007 when it acquired Ethnic Foods, a supplier of mostly oriental-style chilled meals to Sainsbury’s.

The closure of the factory will result in a non-cash exceptional impairment charge of about £16m this year and Northern expects to incur a one-off exceptional charge of about £4m next year.

More Details: http://www.sharecast.com/cgi-bin/sharecast/story.cgi?story_id=3410423