Leamington factory lost despite PoleStar takeover
PoleStar Foods, based in Warwickshire, has been acquired by turnaround investor Privet Capital. The takeover has prevented the immediate collapse of the frozen desserts manufacturer and secured 255 jobs.
Despite the company being rescued by the private investor, Privet said it would be forced to appoint administrators to the “significantly loss making” Leamington factory.
Privet Capital made the purchase and acquired 100 per cent of the equity for an undisclosed sum.
Centric Commercial Finance provided facilities to support the buyout and growth of the company.
Privet said it had been “working closely” with Polestar’s management and has “identified strategies” to assure Polestar’s long-term future.
Polestar was established in November 2009, following the acquisition of two frozen desserts businesses from Heinz, backed by Bank Leumi, with businesses in Leamington, Warwickshire and Okehampton, Devon.
The company is now being restructured to consolidate its operations into its Okehampton Desserts subsidiary. KPMG has been appointed as administrator for its Leamington Desserts subsidiary.
Privet said that its main ambition with the company was to significantly grow its Okehampton flagship site over the next two years.
Ian Astley, a director of Privet, said: “Privet’s investment will support Polestar’s working capital requirements at Okehampton. It will also provide the company with a renewed focus, increased financial strength and a clear strategic plan, thereby ensuring that the company is well placed to continue as one of the UK’s leading manufacturers and providers of frozen desserts for many years to come.
“Despite exhaustive efforts in considering the future of the Company, regrettably, we have been forced to appoint administrators to the significantly loss-making Leamington factory. We look forward, however, to working with Polestar and enabling the company to realise its considerable potential.”
Sue Garfitt, of Polestar, said: “Privet will support Polestar’s ambition to remain a significant market player in the manufacture of frozen desserts by providing expertise and growth capital at a critical stage in the company’s development. We look forward to working with them.”
